If Thursday was party time for tech companies, most of which reported better-than-expected earnings, Friday was the hangover. Most big tech stocks tumbled, as the Nasdaq led the market down by losing nearly 2.5%. Yes, there is a disconnect there, although major tech stocks have rallied strongly in recent months, so maybe they’re getting hit harder by growing anxieties about Covid-19 and next week’s election. .
Investors also might be focusing on some worrying areas emerging for several companies, including weak user growth at Twitter and Facebook, and lower-than-expected iPhone sales at Apple. As one Wall Street executive quoted in this Bloomberg article noted, “the market has priced tech to near perfection and thus one fly—maybe even a fruit fly—in the ointment could perpetuate a selloff.”