Dow Jones Sinks Nearly 400 Points; Tech-Heavy Nasdaq Leads Market Declines

RACHEL FOX

01:44 PM ET 09/18/2020

The Dow Jones Industrial Average fell in today's stock market, while the Nasdaq and S&P 500 also continued lower. The Dow sank well over 300 points on Friday while the tech-heavy Nasdaq led the market on the downside. Volume was heavy due to options expiration.

The Nasdaq composite fell 2.2%. The S&P 500 was down 1.6% and the Dow Jones lost 1.3% in afternoon trading. The Russell 2000 small-cap index was also down about 0.8%. Volume was running higher on the Nasdaq and NYSE vs. the same time on Thursday.

Stock Market Today

Many high profile tech names like Facebook (FB), Amazon (AMZN) and Apple (AAPL) continued to trade sharply lower on Friday. On Thursday, the tech sector led the Nasdaq to its worst day in roughly one week. The tech index even broke support at its key 50-day moving average.

The Nasdaq is on track for a 0.7% loss this week and a second straight weekly close below the 10-week moving average. Meanwhile, the S&P 500 is on track to close flat for the week and is currently testing support at its 10-week like. However, the Dow Jones is aiming for a 0.5% gain and has been holding above its 10-week line.

On an annual basis, the Nasdaq still has the lead. The tech-focused index holds a 23% year-to-date gain despite recent volatility, while the S&P 500 was up 5% through Thursday's close. The Dow remains 2% lower for the year.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change

Dow Jones (0DJIA) 27667.37 -234.61 -0.84

S&P 500 (0S&P5) 3313.06 -43.95 -1.31

Nasdaq (0NDQC ) 10703.93 -206.35 -1.89

Russell 2000 (IWM) 152.24 -1.45 -0.94

IBD 50 (FFTY) 35.80 -0.54 -1.49

Last Update: 1:28 PM ET 9/18/2020

The Innovator IBD 50 (FFTY) exchange traded fund traded nearly 1.4% lower Friday. The index continues to fall below its 50-day line. The growth-focused index was hindered by losses in tech shares including Vertex (VRTX) and Adobe (ADBE), which fell 3.8% and 3.3%, respectively.

As for the Dow Jones, the majority of stocks traded lower, with Apple stock leading on the downside. Shares of Apple breached the 50-day moving average in twice on Friday, after testing support at this area Thursday. The IBD Leaderboard stock is more than 50% extended from a 72.15 buy point of a cup with handle cleared in late April.

Meanwhile, Dow Jones tech components Intel (INTC) and Microsoft (MSFT) also led the downside with losses of roughly 1.8% and 2.3%, respectively.

Outside The Dow Jones

Beyond the Dow Jones, some Leaderboard stocks unexpectedly rose on Friday while others continued lower.

Namely, shares of Tesla (TSLA) rose 2.6% in early afternoon trade.

The electric car maker pared gains from earlier that extended beyond 4%. While most tech shares are falling below their 50-day lines, Tesla remains well above this key area of support.

On Friday, Piper Sandler raised its price target on Tesla stock to 515 from 480. Meanwhile, Wedbush boosted its price target to 475 from 380. Shares are on track for a 17% weekly gain after posting weekly declines for the past two weeks.

On the heels of a price target hike from UBS and RBC Capital, Cowen & Company also upgraded the stock to outperform from market perform on Friday. The firm raised Adobe's price target to 555 from 400.

Elsewhere, Leaderboard stock Nike (NKE) also outperformed early Friday before paring gains to breakeven. Shares were trading over 1% higher ahead of next week's earnings report, due Tuesday after the close.

Shares are currently extended past a 5% buy zone from a cup-with-handle base and 104.79 buy point.

Finally, Leaderboard stock Chipotle (CMG) is testing support at its 10-week line, which could result in a lower entry than its three-weeks-tight pattern if the support holds. Look for a bounce in heavy volume from the 10-week line to provide an alternate entry for the stock. Shares remain 1.2% lower on Friday.

For further in-depth analysis on more growth stock leaders, check IBD's Leaderboard.

Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary.