Things are getting ugly to start the year on Wall Street. Monday, January 4th 2016 is apparently not going to be quite as bad as Black Monday 1987, but it is still a day for the downside record books. Many well known issues, including Amazon and Netflix, saw their market caps slip 5% or more, as U.S. equity indices were down by around 2% by mid-afternoon.
Carnage on Wall Street in yet another Black Monday redux; Netflix, Amazon hammered
While the selloff in U.S. equities was widespread on Monday, it was not on quite the same scale as the China-led global stock market crash in August when the Dow was off over 1,000 points in early trading. Analysts, however, point out that all 10 major S&P sectors moved down on Monday, with a 2.5% percent decline in financials index leading the way.
Of note, financials index heavyweight JPMorgan was off by 3.5% $63.28, while tech titan Apple was down more than 2% at $103.09 as of around 1 PM ET.
Also of interest, recent tech industry high flyer and online giant Amazon was a major drag on the S&P and Nasdaq Monday, as shares of the retailer were down almost 6% at $636.08.
The energy market just can’t catch a break. After seeing strong early action in crude oil prices due to a break off in diplomatic ties between Saudi Arabia and Iran (raising fears of supply cut offs), weakness in China led to further selling in the commodities sector and oil prices are now down slightly for the session.
In precious metals trading Monday, Gold saw a strong bounce, moving up more than 2% as of 1 PM ET. In sympathy, benchmark U.S Treasury yields hit two-week lows as investors piled into safer investments.
Finally, streaming video provider Netflix was the biggest loser on the S&P 500 so far in the session, off more than 6.5% at $106.88 following a downgrade to Neutral by equity research firm Baird.