London Daily

Focus on the big picture.
Saturday, Jul 26, 2025

Tech stocks slide as Wall Street goes into reverse

Stocks on Wall Street went into reverse on Thursday as shares in the five biggest US companies tumbled.

Companies that have powered US markets to record highs - Apple, Amazon, Alphabet, Microsoft and Facebook - fell between 4% and 8%.

Analysts said fears about the economic shock of coronavirus and a possible second wave prompted the sell-off.

The tech-heavy Nasdaq closed down 5%, the Dow Jones fell almost 3%, and the broad-based S&P 500 finished 3.5% off.

Carmaker Tesla, whose shares have soared this year, tumbled 9% on Thursday after falling sharply in the previous two sessions. Another tech heavyweight, Nvidia, ended 9.3% down. Apple's 8% fall meant $150bn (£113bn) was wiped off the value of the iPhone maker.

The sell-off came after mixed US economic data on Thursday that included a report showing slower services sector growth in August, bigger-than-expected drop in new jobless claims, record job cuts this year and an unexpectedly big trade deficit for July.

While the latest weekly initial jobless claims fell more than anticipated, they remain high amid growing worries that employment growth could stall without further economic stimulus.

Chicago Federal Reserve president Charles Evans said on Thursday that Congress would need to deliver more fiscal aid. And he indicated that US monetary policy would be eased further and interest rates kept at ultra-low levels for years to help the economy recover its pre-pandemic strength.

Growing worries about US economic health were underlined by the Vix index, also known as the "fear gauge". This reached its highest since mid-July.

Sentiment wasn't helped by a warning from US infectious diseases expert Dr Anthony Fauci who said there is doubt a Covid-19 vaccine will be developed by the end of October.


US election

The downturn in the US hit European markets. London's FTSE 100 ended down 1.5% at 5,850 points, and Germany's Dax fell 1.4%.

Wall Street had reached fresh highs this week on what Connor Campbell, financial analyst at Spreadex, called "a combination of relatively unfounded vaccine and stimulus speculation". Markets were now seeing a "sharp turnaround", he said.

On Wednesday, the S&P 500 and the Nasdaq closed at record levels, and the Dow came within 1.5% of its February peak,

Emily Roland, co-chief investment strategist at John Hancock Investment Management, said markets were due a reality check.

"Think about the mounting number of risks the market has been shrugging off over the last couple of months. We're 60 days away from the election. That may be an area where investors are getting a bit spooked," she said.

Newsletter

Related Articles

0:00
0:00
Close
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
×