Sep 5, 2020

Suddenly, a whiff of "Don't fight the Fed?"

By Wolf Richter for WOLF STREET.

Over the last two trading days, Thursday and Friday, the Giant 5 stocks combined fell by 7.4% in value. The Nasdaq dropped 6.2% over those two days. For Apple, the most giant of them all, the selloff started on Wednesday:

Apple [AAPL]: -7.9% in 2 days; in 3 days: -9.9%, or -$226 billion.
Alphabet [GOOG]: -7.9%
Amazon [AMZN]: -6.7%
Facebook [FB]: -6.5%
Microsoft [MSFT]: -7.5%

The Giant 5 market capitalization had hit a new mind-boggling record of $7.81 trillion on Wednesday - despite Apple's drop - having skyrocketed from their crisis-low ($4.1 trillion, on March 11) by 91%, or by $3.72 trillion, just these five stocks. Seen in this light, and in the light of their 271% rocket-ride since January 2017, this two-day drop, which wiped out $578 billion in market capitalization and was the steepest two-day drop since March 9 (-12.9%), is really just a small squiggle .......Læs mere

The Wild Ride of the Giant 5 Stocks (APPL, MSFT, AMZN, GOOG, FB) v. the Rest of the Market | Wolf Street

(wolfstreet.com)