The Stock Markets in New York Opened Lower on Tuesday
The stock markets in New York opened lower on Tuesday, under pressure from a further sell-off in the technology sector. Big names such as Amazon, Apple and Facebook were in the red.
The Tesla share has so far experienced its worst turn since March. Investors on Wall Street are returning from a long weekend as the US stock markets were closed for Labor Day on Monday.
Shortly after opening, the Dow Jones index recorded a minus of 1.3 percent at 27,754 points. The broad S&P 500 also fell 1.7 percent to 3365 points, and the Nasdaq technology gauge fell 2.9 percent to 10,984 points.
Companies such as chip producer Nvidia, video streaming service Netflix and the maker of teleconference software Zoom Video Communications also had a hard time with price declines of up to 4.6 percent.
There are concerns in the market that valuations in the United States tech sector have spiked too fast recently. The recent sell-off has ended a boom that propelled the S&P 500 and Nasdaq to records.
Tesla fell 16 percent. The share of the electric car maker is not included in the S&P 500, the index’s compilers announced. Investors had speculated that Tesla could get a place in that gauge.
Nikola, which is also involved in the development of electric vehicles, made a significant jump of 23 percent. Auto group General Motors (GM) is investing $ 2 billion in Tesla’s peer group in exchange for an 11 percent stake. GM and Nikola are also entering into a strategic partnership. GM gained 3.7 percent in value.