On May 20, the NASDAQ 100 Index continued to tank for the second consecutive day. In the last couple of days combined, it has lost nearly 3%. In the weeks ended May 10 and May 17, the NASDAQ 100 Index fell by 3.3% and 1.1%, respectively. On May 20, the S&P 500 Index was down by 0.9%. Let’s find out what caused the NASDAQ to underperform the S&P 500 benchmark yesterday.
Apple stock fell by 3.5%
As of 3:28 PM EST yesterday, American tech giant Apple (AAPL) was trading with 3.5% losses. Yesterday’s massive losses in the iPhone maker’s stock were triggered after the investment bank HSBC cut its target price on Apple to $174 from $180. HSBC raised concerns that Apple’s costs will increase after an increase in tariffs on Chinese imports into the US. The bank believes that these higher costs could make Apple increase its product prices in the US market, which could hurt demand. Apple makes up about 9.92% of the NASDAQ 100 Index.
Broadcom stock fell over 6%
On Monday, American semiconductor company Broadcom (AVGO) saw over 6% losses. These massive losses came after Bloomberg reported, “The Federal Trade Commission is seeking evidence that Broadcom’s conduct harmed competition in Wi-Fi and switch-chip markets,” citing a civil investigative order. The company makes up about 1.42% of the NASDAQ 100 Index.
Tesla lost nearly 3.5%
Yesterday, electric carmaker Tesla (TSLA) fell below $200 to its lowest level since December 2016. At 3:30 PM EST, it was trading with 3.5% losses for the day. These losses in Tesla stock came after Wedbush Securities’ cut its price target to $230 from $275 earlier, citing declining Tesla Model 3 demand in the US. Tesla makes up about 0.45% of the NASDAQ 100 Index.
Baidu fell nearly 8%
Yesterday before the market closed, Baidu (BIDU) was down by 7.8% after a massive sell-off on Friday last week. Baidu reported adjusted earnings of $0.41 per share in the first quarter on May 16, slightly worse than Wall Street analysts’ consensus estimate of $0.42 per share. Baidu makes up about 0.44% of the NASDAQ 100 Index.
Qualcomm loses over 6%
Yesterday US-China trade tensions escalated due to America’s blacklisting of the Chinese smartphone maker Huawei. Huawei is one of the largest chip buyers from US chipmakers, including Qualcomm (QCOM). The move is expected to badly hurt Qualcomm’s business outlook, which triggered a massive sell-off in its stock today. Qualcomm makes up about 1.22% of the NASDAQ 100 Index.