Stock prices fell sharply before the Labor Day weekend, following an astonishing rise from March lows. Information technology stocks in the S&P 500 fell from a peak of 22128.1 on September 2 to 2046.27 by 2:30 two days later. But that was just the equivalent of losing two weeks of gains.
Momentum trading had surely pushed some high fliers into frothy territory, so a correction is correct. But skeptics and short traders claim the market as a whole still remains totally disconnected from “fundamentals.”
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