Stock Market suffers sharp fall of 600 points on its worst day since October | The State

The Dow Jones Industrial Average lost 633.87 points.

Photo:
Angela Weiss / AFP / Getty Images

The shares of the Stock Exchange fell sharply on Wednesday. The Dow Jones Industrial Average lost 633.87 points, making this its worst day since October 28 of last year.. Additionally, the S&P 500 fell 2.6%, suffering its biggest drop in three months.

Today’s heavy losses wiped out the 2021 gains already made by the S&P 500, which is now down 0.1% so far this year. For its part, the high-tech Nasdaq Composite fell 2.6%.

The Boeing company fell almost 4% after his earnings report showed his 2020 net loss hit a record $ 11.9 billion.

On the other hand, shares of Advanced Micro Devices (AMD), a semiconductor company, fell more than 6%, even after the microchip maker posted revenue and earnings that beat Wall Street’s high expectations, as reported in CNBC.

But not all companies did badly, as shares in video game company GameStop more than doubled this day. This happened because several small investors teamed up against hedge funds who bet that the video game company’s shares would fall, according to 9 News.

More than 100 companies that make up the S&P 500 are scheduled to report back to investors this week on how they fared during the last three months of 2020.

Overall, analysts expect these companies to say their fourth-quarter earnings fell 5% from a year earlier, which would be a milder drop than the 9.4% they forecast earlier this month.

Despite this sharp decline in the stock market, stocks are expected to resume their rally.

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