Morgans AM: Tuesday, 10 May 2022

Morgans Financial Limited

US equity markets extended their recent sell-off, with technology stocks under particular pressure once again - Dow dropped -654-points or -1.99%. Walt Disney Company fell -3% to be trading more than >3% below where it was trading 5-years ago. The broader S&P500 slumped -3.2%, sliding below <4,000 to its lowest level since March 2021. The Energy sector tumbled -8.3% to lead ten of the eleven primary sectors lower. Consumer Staples eked out a +0.05% rise to be the only primary sector to advance. Tesla Inc fell -% The Nasdaq tumbled -4.29%, with Meta Platforms Inc and Google parent Alphabet Inc down -3.71% and -2.23%. Amazon.com Inc fell -5.21% and joined a host of other names in the Nasdaq 100 that are now trading below pre-pandemic highs. The technology-centric index is down -25.71% year-to-date, comfortably its worst start to a year on record. The small capitalisation Russell 2000 shed -4.21%. Rivian Automotive Inc shed 20.88% ahead of its first quarter result on Wednesday night AEST (11 May) amid reports that, after the post-initial public offering (IPO) period has passed, Ford Motor Co (down -5.91%) and others will look to divest some of their holding in the electric vehicle maker.