The S&P 500 Index fell on Wednesday with Apple (AAPL) continuing its slip sliding 2.7%, pushing tech stocks further down five sessions in a row.
Tech stocks finally seem to be growing out of its overvaluing zone. Adding to that, fears of stricter regulations gripped the market as a whole.
Fears around iPhone sales seem to be a huge concern for investors. Many think that the tech giant seems to have hit a wall regarding the same. With the stock down for the fifth consecutive day, shares fell as low as 20% from its record high.
Adding to this, banks slipped as the prospective appointment of Democrat Maxine Waters as the US House banking committee chair seemed to have given way to fears of tighter regulations.
When the market opened, it stayed at an optimum level with oil prices rebounding, but tech stocks pulled it down shortly after.
By afternoon, around 1 pm ET, the S&P 500 was down 0.86% while the Dow Jones Industrial Average fell 0.88%. The Nasdaq Composite inched 0.93% down.
In the Dow, apart from Apple, JPMorgan (JPM), Travelers (TRV) and Goldman Sachs (GS) were the top losers, shedding 2% to 2.7%.
From what was a raging bull market till September, it has now become clear that the markets are correcting heavily. Along with this investor fears are mounting on key stocks, especially the tech ones. It is best to diversify your portfolio and not focus on FAANG stocks at this time.