The stock market is set to fall sharply on Tuesday, Sept. 8. Last week, tech stocks suffered their worst sell-off since March. Futures on the Nasdaq-100 lost 2.9 percent. The S&P 500 and the Dow Jones Industrial Average futures fell 1.1 percent and 0.5 percent. Goldman Sachs warned investors and traders that the fear index is flashing a warning sign that hasn't been since 2000. The U.S. stock markets were closed on Sept. 7 in observance of Labor Day.
What is the stock market news?
In pre-market trading on Sept. 8, Tesla stock was down about 15.6 percent at $354. The stock fell after the S&P Dow Jones Indices excluded Tesla from the S&P 500 Index. The world’s most-valuable automaker met the criteria to join the S&P 500 Index last quarter, but S&P 500 managers added Teradyne, Etsy, and Catalent.
Other tech stocks were hit hard in early trading on Sept. 8. Amazon, Netflix, Facebook, and Google-parent Alphabet were all down about 3 percent in pre-market trading. Nvidia fell about 5 percent, Apple fell 4 percent, and Zoom Video and Microsoft fell by 3 percent.
Shares of UPS, Ford, and Disney were up in pre-market trading due to hopes that they would benefit from economies reopening amid the coronavirus pandemic.
What is the VIX fear index today?
Goldman Sachs warned investors that the CBOE’s (Chicago Board Options Exchange) VIX Index is flashing a warning sign that hasn't been seen since the dot-com bubble burst in 2000. The VIX is the stock market’s best indicator of expected volatility in the next 30 days. Usually, when the stock market advances, fears subside and vice versa. However, Goldman Sachs highlighted that the VIX Index and the S&P 500 Index have been moving in tandem. On Sept. 3, the VIX index was 26.6, according to the Goldman Sachs report.
Softbank is the 'Nasdaq whale'
Softbank stock fell 7 percent on Sept. 7 on reports that the company was the “Nasdaq Whale” that made substantial bets on U.S. technology stocks using equity derivatives. SoftBank was sitting on trading gains of around $4 billion after the company made substantial bets on equity derivatives. However, SoftBank declined to comment on the matter.
According to a Bloomberg report, “SoftBank was riding the Nasdaq wave like a mutual fund.” The report added, “The market is falling now and investors have zero visibility, so they are selling SoftBank stocks.”
What are the Nasdaq futures today?
The Nasdaq Composite looks set to start Sept. 8 even lower. Nasdaq futures were down 3.4 percent on Sept. 8, paced by a steep 15 percent pullback in Tesla stock. The Nasdaq Composite Index has gained about 33 percent so far in 2020.
What is Softbank's stock price today?
SoftBank Group stock is publicly listed on the Tokyo Stock Exchange under the stock symbol "9984." On Sept. 8, SoftBank Group stock closed 0.6 percent lower at 5,845 Japanese yen. The stock has fallen by 10.3 percent in the last five days. However, the stock has risen by 24.1 percent in the last year.
SoftBank Group stock is trading 17.4 percent below its 52-week high of 7,077 yen and 123.9 percent above its 52-week low of 2,610 yen. So far, the stock has increased by 22.9 percent in 2020.