US stocks had an amazing reversal session

At the close of the session, the Dow Jones lost as much as 1,063 points, or 3.12%, and closed at nearly 32,998 points. The Nasdaq index fell 4.99% to more than 12,317 points, its lowest close since November 2020. Both the Dow Jones and Nasdaq had their worst intraday declines since 2020. The S&P 500 fell 3.56% to nearly 4,147 points, marking its second worst day of trading this year.

This move comes after a major rally for the market stock The US in the session on May 4, when the Dow Jones index rose 2.81% and the S&P 500 index gained 2.99%, both had their biggest gains since 2020. And the Nasdaq rose 3. ,19%. However, all those profits were erased before noon on 5/5 (New York time).

In an interview with financial news outlet CNBC on the same day, Randy Frederick, executive director of trading and derivatives at the Schwab Center for Financial Research, said that if stocks rose 3% and then fell 0.5 % the next day, which is quite normal. However, to see the stock market reverse 100% within half a day is truly extraordinary.

E-commerce stocks were the main source of weakness in trading on May 5, after some disappointing quarterly reports. Specifically, shares of Etsy and eBay fell 16.8% and 11.7% respectively after posting lower-than-expected revenue. Shopify’s stock also fell nearly 15%. Shares of major tech companies are also coming under pressure, with the Meta platforms of Facebook and Amazon falling 6.8% and 7.6% respectively; Microsoft down 4.4%; and Apple fell 5.6%.