Nasdaq drops below 1,500 mark; Tech stocks crash on latest sell-off

“Technology stocks crashed Wednesday in the wake of fresh worries about the economy, pushing the Nasdaq Composite Index down below the 1,500 mark for the first time in more than five years,” Rex Crum reports for MarketWatch.

“By the closing bell, the Nasdaq had plunged more than 5% to 1,499.21. The index has not closed below the 1,500 mark since May 21, 2003,” Crum reports.

“The Dow shed more than 400 points by the close. The sell-off was sparked by a warning from electronics giant Best Buy Co., which cut its earnings outlook for 2009. The company’s chief executive said the current weakness in consumer spending was creating ‘the most difficult climate we have ever seen,'” Crum reports.

“The warning from Best Buy spooked shareholders for many leading personal-computer and electronics companies. Apple Inc. (AAPL: 90.12, -4.65, -4.9%) , Dell Inc. (DELL: 10.50, -0.83, -7.3%) and Hewlett-Packard Co. (HPQ: 31.14, -2.11, -6.3%) sell their products as Best Buy stores, and Calyon Securities analyst Shebly Seyrafi said those companies will feel some impact,” Crum reports. “‘Clearly this development, along with Circuit City’s bankruptcy, is negative for these companies,’ he said.”

Crum reports, “Shares of Google slid under the $300 mark for the first time since October of 2005 as analysts cut back their estimates for the company, citing worries about the slowing advertising market.”

Full article here.

MacDailyNews Note: In After Hours trading, Apple (AAPL) is currently trading at $87.77, down $2.44, or -2.70%, on volume of 261,458 shares.

39 Comments

  1. Nothing to worry, NASDAQ is wrong, we are right. As we all know, this whole tech stock crash is part of the evil conspiracy against Apple, orchestrated by stupid analysts. The only two sources of financial information we can trust any more are MacDailyNews and Piper Jaffray analyst Gene Munster, who should reiterate his 250$ target any minute now. What the heck, let’s make it a round $300.

  2. @thethirdshoe

    Clearly, you don’t listen to Joe Biden, our new VP, or Governor Bill Richardson of New Mexico (probably a cabinet member in the coming administration). Both opine that taxes will be raised on anyone making over $115,000 . . . roughly half of what HRH Obama originally proposed.

    And if you believe that this modified figure is the actual new floor, you are sadly and childishly mistaken. Get ready, America: You’re about to “get it” at both ends.

  3. I do make more than $250,000 and voted for Obama. I did so because I recognize that the country has to pay down its debts and restore itself to be strong again for my kids future and I believe the Obama administration to be more capable of recovery. I welcome the idea of “getting it at both ends” and can’t wait for us to return to the injustice of the Clinton era again.

  4. I like how a lot of nut jobs are ready to blame our economic woes on a man who has not yet even taken office yet. I can only imagine how shrill you will become once he actually assumes power.

    My perspective: I am 36 years old. Out of those 36 years, Republicans have controlled the presidency for 24 of them, and despite what they claim to believe in… the government has gotten bigger, the debt has been growing out of control, our foreign policy is a disaster, corporations run wild, and our civil liberties have been eroded.

    I have no idea if my taxes will go up or down under Obama. I suppose we’ll have to see. But my tax rate is not my only concern.. If paying higher taxes means we have a stronger more secure country and affordable health care, then I would consider that a bargain.

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