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T3’s Market Wrap: Tech Stocks Still Under Fire

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Yesterday, the Nasdaq tanked as social media stocks took big hits on worries of government regulations.

Today was more or less a repeat.

Twitter (TWTR) fell -5.9% to $30.81. Facebook (FB) dropped -2.8% to $162.53. And Snap (SNAP) fell -3.1% to $9.80.

Semiconductors (SMH) and biotechnology (IBB) were also very weak, giving the action a ‘risk-off' feel.

The Fed was in the news today. NY Fed President John Williams said the US economy is “as good as it gets,” with moderate inflation and low unemployment.

He also said “we don’t feel the need to raise interest rates more quickly than otherwise.”

The US dollar and Treasury yields fell as a result.

But even with the weak dollar, gold well off its intraday highs, and the Vaneck Vectors Gold Miners ETF (GDX) fell today. Today was GDX' fifth day in the red, even though gold was actually up both today and yesterday.

It will be interesting to see if and when the gold miners actually find a bottom. GDX is now down -30% from its 52-week high, and it is down -23% year-to-date.

Even with the recent tech weakness, the Nasdaq is less than 3% from the 8133.30 all-time high, and it's up nearly 15% year-to-date.

In economic data, the Markit PMI Composite was 54.7 was August, missing the 55.0 consensus.

The Markit Services PMI was 54.8, coming under the expected 55.2.

Factory Orders dropped -0.8% in July, missing expectations.

On the positive side, the ISM Non-Manufacturing PMI was 58.5 in August, beating the expected 56.8.

And on an even more positive, jobless claims for last week were just 203,000 — the lowest level since 1969. This is a sign of a very strong labor market.

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