EDITOR'S NOTE
Wednesday started out as a strong day for investors betting on an economic recovery from the Covid pandemic. The Dow Jones Industrial Average gained more than 360 points at one point, led by reopening plays.
The robust recovery investing thesis was reinforced as Federal Reserve Chair Jerome Powell told the Senate he expects the economy to experience superior growth in 2021. “There’s going to be a very, very strong year in the most likely case,” Powell told the Senate Banking Committee. “There are of course risks to the upside and downside, but it should be a very strong year from a growth standpoint.”
But weakness in tech shares ruined the day, sinking lower and lower as the day went on and eventually taking all the major averages with them. The S&P 500 closed down 0.6% and the Dow ended up with a three-point loss. The tech-heavy Nasdaq Composite lost 2% on the day. 
Investors in tech manias of old fared the worst on Wednesday, with shares of GameStop tanking 33% and Tesla down 5%.
GameStop reported disappointing quarterly results and signaled the brick-and-mortar video game retailer was considering selling additional equity shares. The stock drop was likely due to dismay that a more detailed transformation wasn’t unveiled.
“While everyone was expecting big news about some massive digital transformation in the mold of the new tech-oriented board members, nothing was said,” wrote Telsey Advisory Group analyst Joseph Feldman. “In fact, the company did not even take questions on the earnings conference call."
Tesla’s stock has traded poorly this week despite the showy $3,000 price target from Cathie Wood of Ark Invest. TOP NEWS
TOP VIDEO
CNBC PRO
SPECIAL REPORTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
