The major indices moved down roughly 2.5% today and the S&P 500 is beginning to approach the critical 3000 level. There are serious headwinds prohibiting the market from rallying much higher than here and it always comes back to the virus.
Something that stuck out to me, technology stocks held up pretty well, specifically large market capitalization companies such as Apple, Amazon, Microsoft outperformed the NASDAQ and continue to show strength. Technology Stocks Keep Pushing Higher, money is flowing to the largest market capitalization companies.
The election is getting closer by the day. Democrats are beginning to take the lead in the polls. The stock market views this negatively because they want to raise corporate taxes and erase the cuts under Trump. Wall street is hoping for a Trump reelection so these accommodative economic policies can last. Defense stocks have been in a downturn, the upcoming election could be influencing this move.