September is shaping up to be a bad month for the stock market in general, but it could be an even worse time for the group of stocks that has generated the most bullish momentum for Wall Street since March.
September of fire for technological actions
A contingent of companies related to highflying technology, consisting of Facebook Inc. (Facebook shares - ticker: FB), Amazon.com (ticker: AMZN), Apple Inc. (ticker: AAPL), Microsoft Corp. (ticker: MSFT) and the parent company of Google Alphabet Inc. (ticker: GOOGL, GOOG), is on track for the steepest monthly decline on record, according to Dow Jones Market Data.
About $ 817 billion in market value was lost by the heavyweight quintet in September, which puts the group on track for the steepest monthly slump on record. The second worst month ever for the stock collective is October 2018, which saw a loss in value of approximately $ 425 billion.
Meanwhile, Netflix (ticker: NFLX), one of the companies of the FAANG group of technology companies (an acronym for the group of five well-known companies Facebook, Amazon, Apple, Netflix, Google) has lost about $ 24 billion of its value, its decline. steepest monthly since October 2018.
Apple, the giant of the group and the largest company in America by market value, lost about $ 322 billion of its value at the close last week, which would represent its largest contraction, based on market capitalization, in history. of the company.
To be fair, Apple has made giant bullish moves since the market hit its lowest level around the time of the coronavirus on March 23. Since that time in late March, Apple has added a staggering $ 934 billion to its market cap. Facebook, Apple, Amazon, Microsoft and Alphabet all lost a total of $ 2,6 trillion, according to Dow Jones Market Data.
A broader view
The stalemate in technology raises some questions about the market's ability to further increase traction, with the Nasdaq Composite (ticker: COMP) correcting on September 8, defined by a drop of at least 10% after a recent spike.
Lindsey Bell, chief investment strategist at Ally Invest, says investors should go straight rather than worry too much about the current volatility that has resurfaced in the market due to concerns over lack of financial stimulus, fear of the aforementioned run-up of stocks and growing concerns about the spread of COVID -19.
"The history of technology is bigger than this September drop," Bell said. "The pandemic has forced companies and consumers to seek high-tech solutions during the quarantine, and this change shows no signs of slowing down."
