Tech stocks on Wall Street fell for a third day in a row as investors grew frustrated with companies for missing profit targets, the Financial Times reported, EP reports.
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On Wednesday, the Nasdaq Composite had its worst day in 18 months, falling 3.6%. The sharp drop came after the U.S. economy grew 2.8% year-on-year in the second quarter, beating expectations.
Inspired by the GDP figures, traders returned to small-cap stocks.
The move began earlier this month after lower-than-expected inflation figures for June boosted investor confidence that the U.S. economy remains on track to reach a “golden scenario” in which inflation slows, without triggering a recession.
The sharp declines in Europe and Asia marked a reversal of the frenzy around technology stocks, particularly those linked to artificial intelligence, that has driven much of this year's gains. They also highlight the harsh punishment investors are exacting on companies that miss profit targets.
- Stocks (Securities) Stock Market
