Nasdaq Nosedives Into Correction as Bears Sharpen Claws on Tech Wreck By

© Reuters.

By Yasin Ebrahim – The Nasdaq fell into correction territory Tuesday as the sell-off in big tech stocks continued, led by Tesla and Apple.   

The fell 2.25%, or 632 points. The was down 2.76%, while the slumped 4.11% into correction territory, with losses of about 10% in the past three days.

Apple (NASDAQ:) led the rout in FAANG stocks, dropping 6.7%. The selloff in Apple comes amid growing speculation over whether the company will launch its new iPhones at its event on Sept. 15.  

“While the launch and 5G smartphones hitting the shelves will be in October, we continue to believe the official virtual unveiling of this linchpin product launch will be in late September with an announcement out of Cupertino in the next few weeks,” Wedbush said in a note earlier this week.

Apple’s legal battle with Fortnite maker Epic Games intensified as the iPhone maker said it had countersued the game’s maker, alleging breach of contract.

Chip stocks also played a role in the selloff, with the down 4.7%. The Trump administration is reportedly looking at adding Chinese chip giant, SMIC, to the Commerce Department’s “Entity List,” which would bar it from doing business with U.S. firms.

Tesla (NASDAQ:) fell 20% after the electric automaker failed to make the cut for inclusion into the S&P 500 index despite recording a fourth consecutive quarterly profit earlier this year.

Tesla rival Nikola (NASDAQ:) surged 41% after the electric truck maker announced that General Motors (NYSE:) had taken an 11% stake in the company. Under the partnership, GM will produce Nikola’s hydrogen fuel cell electric truck, the Badger, by the end of 2022.

Energy stocks plunged into the red, down 3% as U.S. oil prices sank more than 7% as ongoing concerns about the strength of demand persisted.

Boeing (NYSE:), meanwhile, slid 5.8% as the company reported that the U.S. aviation authority began a probe into manufacturing flaws in the Boeing 787.

The company reported a total of 13 deliveries last month as inspections from manufacturing faults of its 787 Dreamliner jets halted order activity.

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