The Closing Bell: Nasdaq Slides As Investors Weigh Tech Probes

Ted

(The Closing Bell will be updated sometime after 4:00 PM CDST to include the latest updates from IBD and Bloomberg Evening Briefing.)

FYI: Technology stocks tumbled Monday, hit by fears that regulators might take a fresh shot at industry giants such as Alphabet and Facebook.

The Nasdaq Composite slid 1.6%, on course to close in correction territory: an at least 10% decline from its May record. The S&P 500 lost 0.28% and the Dow Jones Industrial Average rose 4 points, or 0.2%, to 24819.

Stocks began the day little changed, but then fell to session lows around midday as a report that the Federal Trade Commission had secured rights to begin a potential antitrust investigation into Facebook sent technology shares skidding. Facebook slid 7.7%, while Amazon.com lost 5% and Alphabet fell 6.7% to erase its gains for the year.

Alphabet shares had also been under pressure earlier in the day on a report that the Justice Department had been given chief oversight over a Google probe.

Traders placed bets on the volatility continuing, sending the Cboe Nasdaq Volatility Index—which tracks expectations for swings in the Nasdaq-100 over the next month—up around 5%.

Investors have seen the sector hit hard before. Technology shares slumped in March 2018, when Facebook came under fire over its privacy and data-use standards. Shares of the so-called FAANG group—which includes Facebook, Amazon, Apple, Netflix and Alphabet—wiped out hundreds of billions of dollars in market value in less than two weeks.

Elsewhere, the Stoxx Europe 600 rose 0.4% as gains in shares of health-care companies offset losses among banks.

German bond yields drifted lower after the chairwoman of Chancellor Angela Merkel’s junior coalition partner stepped down, adding to uncertainty over the government in Berlin.

In Asia, the Shanghai Composite fell 0.3% for its third consecutive session of losses, while Japan’s Nikkei Stock Average lost 0.9%.

Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/search?query=Evening Briefing

MarketWatch:
https://www.marketwatch.com/story/dow-set-to-renew-slide-to-start-the-week-as-10-year-bond-yield-extends-retreat-2019-06-03/print

WSJ:
https://www.wsj.com/articles/stocks-bond-yields-start-the-week-with-fresh-declines-11559548438

Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-02/asia-stocks-face-more-pressure-on-trade-war-angst-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/nasdaq-gets-roiled-federal-probes-hit-apple-fang-stocks/

CNBC:
https://www.cnbc.com/2019/06/03/stocks-rise-but-trade-battles-keep-gains-in-check.html

Reuters:
https://uk.reuters.com/article/us-usa-stocks/wall-st-edges-higher-boosted-by-healthcare-alphabet-amazon-pressure-nasdaq-idUKKCN1T41JO

U.K:
https://uk.reuters.com/article/uk-britain-stocks/pharma-stocks-aid-turnaround-in-ftse-100-profit-alert-sinks-kier-idUKKCN1T40SG

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-rise-spurred-on-by-healthcare-stocks-idUSKCN1T40TF

Asia:
https://www.marketwatch.com/story/asian-markets-mostly-lower-as-trade-tensions-show-no-sign-of-fading-2019-06-02/print

Bonds:
https://www.cnbc.com/2019/06/03/us-bonds-treasurys-tick-lower-as-investors-await-data-auctions.html

Currencies:
https://www.cnbc.com/2019/06/03/forex-market-us-china-trade-war-global-slowdown-fears-in-focus.html

Oil:
https://www.cnbc.com/2019/06/03/oil-market-us-china-trade-war-us-crude-stockpiles-in-focus.html

Gold
https://www.cnbc.com/2019/06/03/gold-market-us-china-trade-tensions-global-recession-fears-in-focus.html

WSJ: Markets At A Glance:
https://markets.wsj.com/us

Major ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitor

SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker

SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors

Current Futures:
https://finviz.com/futures.ashx