(C) Reuters. Forty-Three Days of Nasdaq Dip Buying May Crater With Netflix
(Bloomberg) — For fans of haywire market statistics, there’s this: The Nasdaq Composite has managed to go two months without posting back-to-back declines. That record streak was under threat after Netflix Inc (NASDAQ:NFLX).’s big after-hours drop sent exchange-traded funds tracking the tech space reeling.
The index, heavily weighted to megacaps like Amazon.com Inc (NASDAQ:AMZN)., Facebook Inc (NASDAQ:FB). and Apple Inc (NASDAQ:AAPL)., was already down 0.7% in Thursday’s regular session, as investors rotated out of tech in favor of laggards like airlines and energy. An ETF tied to its sister index, the Nasdaq 100, dropped more than 1% after the close.
The proximate culprit was Netflix, which said it expects to add 2.5 million paid subscribers to its streaming service in the third quarter, about half the estimate in data compiled by Bloomberg. The stock is down about 10% from its close at 4 p.m. in New York, dragging Amazon and Facebook down in sympathy.
A retreat Friday in the larger Nasdaq Composite would end the 43-day stretch without posting losses two days in a row.
Two down days in a row hardly proves that tech shares’ 2020 dominance is coming to an end, but the trend has shown signs of cracking in recent weeks.
(C)2020 Bloomberg L.P.
Forty-Three Days of Nasdaq Dip Buying May Crater With Netflix
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