Nasdaq drops 0.6% as Tesla, Netflix stumble
High-flying tech companies Netflix and Tesla Motors stumbled Wednesday, pulling the Nasdaq 0.6 percent lower in a muted day for US equities. AP PHOTO/RICHARD DREW
New York–High-flying tech companies Netflix and Tesla Motors stumbled Wednesday, pulling the Nasdaq 0.6 percent lower in a muted day for US equities.
At the closing bell, the tech-rich Nasdaq Composite Index stood at 4,675.71, down 26.73 points (0.57 percent).
The Dow Jones Industrial Average slipped 4.85 (0.03 percent) to 17,682.97, while the broad-based S&P 500 lost 3.19 (0.16 percent) at 2,048.61.
Tesla shares fell 3.9 after Morgan Stanley trimmed its profit forecast for the electric-car manufacturer, while Netflix dropped 4.7 following news that it pulled the plug on a Bill Cosby program due to allegations of rape and sexual abuse against the comedian.
Analysts said hot Nasdaq stocks were also affected by profit-taking after big gains in recent weeks.
Federal Reserve policymakers saw a potential threat to US growth from the global slowdown and a possible decrease in inflation in their last meeting, according to the minutes Wednesday of the central bank’s October meeting.
The minutes made clear there was little thought of departing from the current policy trajectory, including keeping the benchmark fed funds interest rate at the current zero level well into 2015.
