Seeking Alpha

Big techs battered by fears of increased U.S. government scrutiny

|By:, SA News Editor

The Nasdaq Composite bore the brunt of today's stock market losses on reports that the U.S. government was targeting various big tech companies for antitrust violations.

Nasdaq tumbled 1.6% to enter correction territory, trading more than 10% below its late April record high.

Alphabet shares sank 6.7% following reports that the Justice Department was preparing to launch an antitrust investigation of Google, while Amazon slid 5.4% and Facebook fell 7.7% following a WSJ report that the Federal Trade Commission could examine the companies' practices, and Apple slipped 1.8% after Reuters reported the DoJ had received jurisdiction to investigate that company.

Communications services (-3.1%) was today's biggest decliner among the S&P sectors, followed by technology (-1.7%) and consumer discretionary (-0.8%), but the other eight S&P groups all finished higher, led by materials (+3.1%).

Even so, continuing concerns about trade and growth helped limit buying conviction throughout the day.

Growing expectations for a rate cut, as well as general growth concerns, again sent Treasury yields tumbling, with the two-year note sinking 12 bps to 1.83% and the 10-year yield sliding 6 bps to 2.08%.

Crude oil prices gave up most of an early rebound effort, with WTI settling -0.5% at $53.25/bbl.

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