Analysts expect swings to continue to rattle markets for weeks, if not months, as investors wait for more clarity on several key issues. At the head of the list of uncertainties, for now at least, is what to do with Big Tech stocks.
Apple, Amazon and others soared through the pandemic as their businesses boomed despite the recession. The coronavirus accelerated a shift to online life that’s benefited them, and a pile-on of investors into Big Tech sent their share prices soaring to levels that critics said were simply too high.
Apple had a nearly irrepressible run this summer where it rose in 13 out of 14 weeks. Zoom Video Communications surged above $450 per share earlier this month after starting the year at less than $70.
That all came to an abrupt halt last week. Worries that the stocks had gotten overheated helped send the S&P 500 to its worst three-day run in nearly three months, and the Nasdaq composite slid 10%. Tech stocks and the market broadly recovered a bit on Wednesday, and they seemed to regain their stride Thursday morning, only for an afternoon swoon to batter them again.
On Friday, tech stocks again swung from gains to losses. The fluctuations came even after Oracle reported stronger profit for its latest quarter than analysts expected. It also gave a forecast for profits in the current quarter that topped Wall Street’s expectations. After leaping as much as 7.9% in the morning, its stock was virtually flat.