Dow Jones Futures Plunge; Apple, Square, AMD, Nvidia, Amazon Signal Sharp Stock Market Keep Falling

Dow Jones futures fell sharply late Wednesday, along with S&P 500 futures and Nasdaq futures. Apple (AAPL), Advanced Micro Devices (AMD), (AMZN), Nvidia (NVDA) and especially Square (SQ) lost ground in extended trade after big losses during Wednesday’s stunning stock market sell-off.


During Wednesday’s stock market trading, the Dow Jones plunged 3.15% and the S&P 500 3.3%, both knifing through their 50-day moving averages. The Nasdaq composite crashed 4.1%, driving below its 200-day line. Just two industries eked out gains out of the 197 industries that IBD tracks. One was gold and silver miners and the other the two-stock Media-Periodicals group. Every single member of the IBD 50 stock list lost ground.

Apple stock, AMD stock and Square stock plunged through their 50-day moving averages after all three top techs rebounded from that key area on Tuesday. Nvidia stock tumbled to below its 200-day line, finally invalidating a buy point initially cleared in late August. Amazon stock is losing sight of its 50-day line after undercutting that level last week.

IBD’S TAKE:If you want to understand the state of the market, pay attention to the major averages and leading stocks. Read IBD’s Stock Market Today columns throughout the market day, and the end-of-day The Big Picturefor timely market analysis and highlighted growth stocks breaking out of proper bases. This week IBD Digital is open access, so take advantage and read The Big Picture and other subscription content.

Dow Jones Futures Today

Dow Jones futures fell 1.3% vs. fair value, or about 330 points. S&P 500 futures slid 1.1%. Nasdaq 100 futures retreated 1.4%.

President Donald Trump, continuing his criticism of the central bank, said late Wednesday that policymakers have “gone crazy” with Fed rate hikes.

Asian market suffered big losses in Thursday morning trade.

Keep in mind that Dow futures, late night moves in Apple stock and other extended action don’t necessarily translate into actual trading in the next regular session. That’s especially true amid big stock market volatility. In Wednesday’s premarket, futures drifted toward modest declines but gave no indication that a massive sell-off was brewing.

Apple Stock

Apple stock had been holding up relatively well amid the sell-off in growth and tech names. But shares of the iPhone maker fell 4.6% to undercut its 50-day line. Apple stock — a member of the Dow Jones, S&P 500 and Nasdaq composite — retreated 1% in late trade.

AMD Stock

Advanced Micro Devices plunged 8.2% in Wednesday’s session. AMD stock closed below its 50-day line for the first time since April 25, when the chipmaker reported strong earnings that triggered a huge run-up. AMD stock fell 2.8% late.

Square Stock

The digital payments stock skidded 10.1% to 77.45 during Wednesday’s session, below its 50-day line for the first time in five months. Worse, Square stock plunged 10.3% in extended trade. Square CFO Sarah Friar is leaving the company to become CEO of NextDoor, a neighborhood-based social site. Analysts said Friar has been especially pivotal to Square’s success, perhaps more so than Jack Dorsey, who is CEO of Square and Twitter (TWTR).

Amazon Stock

Amazon stock plunged 6.15% on Wednesday and is down 12.3% so far this month. It’s now targeting its 200-day line, an area it hasn’t really broken since March 2016.

Amazon stock fell 1.15% late.

Nvidia Stock

Nvidia stock had recently undercut a buy point and dipped below its 50-day line, but the graphics-chip leader was still hanging around until Wednesday. Shares crashed 7.5% to 245.69, closing just below their 200-day moving average for the first time since February 2016. That finally invalidates the 269.30 buy point. Nvidia stock slid 1.5% overnight.

Nvidia and AMD stocks have been standouts in the struggling chip sector, which is now in meltdown mode. The Philadelphia Semiconductor Index plunged 4.4% on Wednesday and is now well below its 200-day line.

The stock market is in a correction. In this environment, investors should be erring on the side of caution. Even without looking at overall market conditions, individual stock action should spur investors to move more into cash.


The Big Picture: Bears Rip Stocks As Market Shifts To Correction

IBD 50 Stocks To Watch: What To Do As Top Stocks Get Smacked Down

How To Sell Stocks: Don’t Freeze If A Double-Digit Gain Shrinks Fast

Boeing, Dow Jones Industrial Stocks Are No Safe Haven Amid Tech Tumble

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Originally posted 2019-09-19 23:22:31.


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