Market Recap: Thursday, September 3

The markets closed in the red as the market saw its largest sell off since June with the big technology names seeing a sharp drop. The Final Round panel discusses the latest.

Video Transcript

[BELL RINGING]

SEANA SMITH: And that does it for the trading day today. Again, losses across the board-- Dow, the S&P, and NASDAQ firmly in the red. The NASDAQ off just around 5% today, falling well below that 12,000 mark that we talked about so much yesterday. Dow closing off over 2.5%, and the S&P off nearly 3.5%.

A lot of the weakness today coming from the tech sector-- the tech sector snapping its 11-day winning streak. That's the first time we have seen technology get hit so hard in quite some time. Taking a look at some of those FAANG names-- Facebook pretty substantially, off just around 5%. Apple off just around 7%. Google and Amazon off just around 5.5% as well-- so weakness across the board in a lot of the FAANG names.

Taking a look sector wise, it's not just technology, obviously, when you see losses of this type of magnitude. All 11 of the S&P sectors closing the day in the red. Technology, obviously, the hardest hit, but consumer discretion theory and communication services also the biggest underperformers of the day.

A couple of other names catching our attention-- some of those momentum needs that we have been talking about so much, they are really taking a hit today. Zoom, for example, off just around 10%, Tesla, another huge momentum name-- maybe the biggest momentum name that we have been talking about-- off around 18% over the past three sessions, down just around 9% today alone.

Peloton, that's another stock that has been really benefiting from that work from home trade, falling out of favor today as investors looked to take some profits-- those shares off just around 10%. I want to bring in my co-host for the next 30 minutes, Myles Udland. We're also joined by Yahoo Finance's editor in chief Andy Serwer, Rick Newman, Akiko Fujita, and Jared Blikre to help us break down today's action.

And, Myles, obviously a huge move here to the downside in the market after a market that has done basically nothing but have trended to the upside. But we've been waiting for a pullback like this-- maybe not to this degree, but we sure got a huge drop today.

MYLES UDLAND: Well, you know, as Jared just flagged for us, this is the biggest decline in the S&P and the NASDAQ since June 11-- a date that I've referenced several times in the last hour, and a date that throughout today's session, is really the only day that I could think of as an analog. And I do think that this was, you know, a middle market that floated higher-- the tech sector's been up 10 days in a row. See the S&P-- I think it closed at a record high seven of eight days-- I mean, things have just sort of been crazy.

And you didn't think it was going to resolve with, you know, a flattish market or, you know, the S&P goes down a percent over a couple of sessions. I mean, this market, really, since we got out of the most acute phase of this crisis, has been up and to the right, punctuated by very sharp, severe, and brief declines. And I am very, very interested to see what happens over the next couple of trading days, because the rotation, as you outlined, out of anything that worked into all kinds of stocks that didn't work.

It happened with such speed and such conviction in just the last couple of trading hours, I'm very interested to see if we have followed through on that. Because at each point where it seemed that the market would wholesale change and we'd see tech endure a long period of underperformance, that has really not stuck.

We saw it very briefly at the beginning of August, again, we saw it back in June. And I'm just very curious to see whether we get, indeed, a new period for this market or if we're sitting here this time next week talking about how things sort of look the same after kind of a brief pause.