Market Extra: When the Nasdaq has had as ugly a start to September as it just had, it has always finished the month lower
Technology stocks got wrecked Tuesday on Wall Street, and that bodes ill for the rest of the month, according to Dow Jones Market Data.
The decline in the Nasdaq Composite Index COMP,
Tuesday’s bitter slump, resulting in a 4.1% drop for the Nasdaq Composite, marked the worst start to the index in September, a notoriously weak month for U.S. equities, on record. The index has sunk 10% over the past three sessions, following a record close Sept. 2.
And the stats for the outlook for the market appear to show that it’s tough for the index to recover from the likes of the downturn it just faced.
When the Nasdaq has previously tumbled by at least 4% in the first five days of September, it has ended lower. The Nasdaq has booked five Septembers since 1974 (not including Tuesday’s drop) in which it registered declines of at least 4%, and in four of those five declines — 1974, 2000, 2001 and 2008 — the equity benchmark added to its losses (see attached chart):
To be sure, that’ s hardly a significant sample size, but it’s still a stat worth considering as the market looks to right itself following three withering days for formerly high-flying tech stocks.
The moves by the Nasdaq Composite may also have broader implications for the market as a whole, since buzzy tech-related names like Tesla Inc. TSLA,
Although bullish investors hope that the declines in the index helped to clear away some of the frothiness that had accumulated since the March lows for the stock market, there are some concerns that the tech wreckage could portend longer-term bad news for the Dow Jones Industrial Average DJIA,
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, MarketWatch.com – Top Stories reports