Among the top energy shares, Apache Corp (APA: NASDAQ), Devon Energy Corp (DVN: NYSE), Occidental Petroleum Corp (OXY: NYSE), Diamondback Energy Inc (FANG: NASDAQ) and Marathon Oil Corp (MRO: NYSE) are down between 10.1% and 7.8% on the day.
Tesla Inc. shares slumped in USA pre-market trading on Tuesday after the electric-vehicle maker missed out on being included in the S&P 500 Index, taking investors who had bet on its entry to the benchmark by surprise. Investors were betting on inclusion of the stock into the S&P 500, hoping for the stamp of approval on the rally by S&P.
The Dow Jones Industrial Average fell 632.42 points, or 2.25%, to 27,500.89, the S&P 500 lost 95.12 points, or 2.78%, to 3,331.84 and Nasdaq dropped 465.44 points, or 4.11%, to 10,847.69, ending more than 10% down from its most recent peak.
Other hot Nasdaq stocks were hit hard in early trading.More news: Saudi King, U.S. president discuss G20 efforts to combat COVID-19
A gauge of value stocks fell 1.84 per cent but outperformed the broader market and a 3.38 per cent decline in the growth index. The tech trade could lose some of its firepower if Softbank were to curb those bets.
Confusing things were the continuing speculation about big option purchases in recent days by Japanese tech investor, Softbank. Applied Materials dropped more than 6%. Even with last week's pullback, the Nasdaq is up more than 70% from its March bottom.
Geopolitical developments could also weigh on investor sentiment. China accused the USA of "bullying" as it launched a global data security initiative on Tuesday.
On Friday, stocks snapped a five-week winning streak after a big reversal in major technology stocks.More news: Australian surfer dies after shark attack at a popular Gold Coast beach
Large tech firms took the worst of it, including Tesla (TSLA, -21.1%).
President Donald Trump on Labor Day said America would "end reliance on China once and for all, whether it's decoupling or putting in massive tariffs like I've been doing already". Treasury prices and yields move in opposite directions.
Gold prices shed $9.70 to $1,924.60 U.S.an ounce. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article.More news: Art Attack's Neil Buchanan denies being the real Banksy