Tech Wreck: Markets Plunge As Apple Sets Market Cap Loss Record

Technology led the market down Thursday, where all three major indices saw big losses and Apple Inc. AAPL set a market cap loss record.

What Happened: Apple set a global record by losing $180 billion in market cap.

The prior U.S. record was Facebook FB, which lost $120 billion in one day back in July 2018 due to weak earnings and the Cambridge Analytica data-mining scandal. The global record was set by Volkswagen AG VWAGY, which lost $143 billion back in October 2008.

The Dow Jones Industrial Average closed down 2.79% to 28,289.63. The S&P 500 closed down 3.46% to $3,456.79. The Nasdaq Composite closed down 4.96% to $11,458.10.

Why It Matters: The Nasdaq index has only lost 2.5% or more the day after hitting a record high, as it did in Wednesday’s trading session, nine times.

The “Fab 5” mega-cap stocks, which include Apple, Microsoft MSFT, Alphabet Inc GOOG, Amazon.com AMZN and Facebook, lost over $500 billion in combined market cap Thursday.

This was the biggest percentage drop for Apple shares since their 12.9% loss back on March 16.

“The stock market has run a long way in a short amount of time, particularly in the technology sector. This market has been due for a pullback. Actually, overdue,” Bankrate Chief Financial Analyst Greg McBride said in an email.

Price Action: Apple shares fell 8% to $120.88, while Microsoft shares fell 6% to $217.30. Tesla TSLA saw shares trade down for the third consecutive day, closing down 9% to $407.00.

Image credit: bfishadow, Flickr

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsFuturesTop StoriesAfter-Hours CenterMarketsTechDow JonesNASDAQS&P 500
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!