The stock market took a dive in late trading on Tuesday, with some of 2020’s hottest and highest-profile tech stocks helping to lead the way. Amazon.com (ticker: AMZN), Apple ( AAPL), and Facebook ( FB) all finished lower on the day.
Big Tech stocks have been some of the year’s biggest winners in a turbulent market, making Silicon Valley names some of Wall Street’s most richly valued. Political considerations, including growing pessimism on Capitol Hill over stimulus talks and the looming announcement of presumptive Democratic presidential nominee Joe Biden’s pick for a vice presidential running mate, also factored into Tuesday’s late afternoon gyrations.
Soon after the market closed, Biden announced Sen. Kamala Harris as his running mate. The Dow Jones Industrial Average lost 104 points, nearly 0.4%, to finish at 27,686 on the day.
Airbnb IPO in the works. For years, the home-sharing platform Airbnb has been one of the most highly anticipated upcoming public offerings. Regardless, the previously well-financed sharing economy mainstay has managed to stay private. The pandemic has taken its toll, however, and the company’s valuation has reportedly dipped from $31 billion to around $18 billion in 2020 as the travel and hospitality industries imploded.
Airbnb’s plans to file confidentially for an initial public offering later this month means shares in the company could hit public markets sometime later this year.
Uncharacteristically bad day for gold. Russian President Vladimir Putin claimed that his country had developed a vaccine, causing some money to shift to foreign markets and out of U.S. Treasurys, driving yields slightly higher.
Higher Treasury yields are typically bad for gold, which, as a commodity, doesn’t offer any income stream for yield-oriented investors.
Although taking Putin’s claim with a grain of salt is probably wise, if Russia has developed a vaccine then the uncertainty driving investors to the precious metal would markedly decrease. Gold prices fell more than 5% on the day, receding from the previously unprecedented $2,000 per ounce level.
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