Updated: Nov 6, 2020
Last week was one of the worst weeks in Wall Street since the height of the pandemic, so it was expected that at least on Monday, things would look up. Although the elections looms ominously over America, the 3 major American indexes were all up, even though big tech names like Apple and Amazon were down, Amazon being down more than a percent. The Dow, NASDAQ, and S&P 500 all rose about 1.6%, 0.4%, and 1.2% respectively. This article will analyze what's happening with some of the most relevant technology companies of the era, why their stocks have been steadily decreasing over the past month, and the futures for tomorrow, Tuesday November 3, with the election in play.
It seems perplexing. By now it seems obvious that tech companies would be soaring during a pandemic, especially those like Amazon, who can deliver essential items to people's doorsteps, without them having to leave their couch. But tech earnings took a turn this past month, especially last week. And- surprise- it wasn't a good turn. These companies, "Big Tech" companies, have sparked some controversy recently. Controversy or not, they have the funds and the capital to make it through an event like this, so why the downturn? Well, for starters, companies have indeed increased spending. Whether it be for improved insurance, cleaning supplies, and testing equipment, Amazon itself has spent billions on COVID-19 related materials alone.
Apple CEO Tim Cook, as well as many other company leaders have issued warnings for their company about COVID-19, saying it creates "uncertainty" in some places within the company and the market. Another big tech company, Facebook, joins the group who warns for the day after Election Day. Many have warned of civil unrest. Shocking as it is to say, they may not be wrong. Zuckerberg warned of "increased risk of violence and unrest." Facebook stock fell nearly 0.7% (1.75 points) today. These issues caused concern within the population, and drove some of these stocks down.
Lastly, for tomorrow's futures: The election has always caused much volatility within the stock market, and this year, investors and civilians can relax. Here is a picture of the futures for tomorrow:
Summary: The stock market rose today, and is expected to rise tomorrow. Big names like Apple and Amazon have seen falls in their stocks, because their spending on COVID-19 related issues have increased. Tim Cook warns of uncertainty, and Mark Zuckerberg warns of civil unrest after the Election, worrying many Americans. The results of the elections are likely to heavily influence the stock market on Wednesday.
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