Sign in Subscribe
Office equipment industry

Stock Prices Fall as Technology Shares Lead the Slide

Strategic Insights

— 2 min read

The US stock market experienced a significant decline on March 19, with the Dow Jones Industrial Average unable to maintain the psychologically significant level of 10,000. The Dow Jones Industrials, which had risen as much as 127.09 and briefly surpassed 10,000, ultimately fell 94.07 to 9,903.55. The Standard & Poor's 500 index also declined, dropping 17.26 to 1,299.29. The decline in technology shares, led by IBM's sharp fall after Morgan Stanley cut its target price, was a major contributor to the market's downturn. However, some analysts remain optimistic, citing a potential rise in the market on Monday following the expiration of options and futures.

Key Takeaways:

  • The Dow Jones Industrial Average fell 94.07 to 9,903.55, failing to maintain the level of 10,000 despite a brief surge earlier in the session.
  • The Standard & Poor's 500 index declined 17.26 to 1,299.29, with NYSE decliners outpacing advancers 1,806 to 1,166.
  • Technology shares led the decline, with IBM falling 8.75 after Morgan Stanley cut its target price to $195 from $210 due to revenue concerns.
  • Despite the decline, some analysts remain optimistic about the market's prospects, citing a potential rise in the market on Monday following the expiration of options and futures.
  • Richard Cripps, chief market strategist at Legg Mason Wood Walker, stated that "the market is changing complexion" and there is a significant shift away from technology into other sectors.
  • Michael Farr, portfolio manager at Farr Miller and Washington, downplayed the significance of the Dow reaching 10,000, stating that it was "more hype than substance."

Statistics:

  • 911 million shares traded on the New York Stock Exchange.
  • The Dow Jones Industrial Average fell 94.07 to 9,903.55.
  • The Standard & Poor's 500 index declined 17.26 to 1,299.29.
  • NYSE decliners outpaced advancers 1,806 to 1,166.
  • IBM fell 8.75 to 168.875.

Sources:

  • "Stock prices fell today, with the Dow Jones Industrial Average unable to maintain 10,000 as technology shares led the slide." - UPI, March 19
  • "The Dow Jones Industrials, up as much as 127.09 and over 10,000 for half the session, fell 94.07 to 9,903.55." - UPI, March 19
  • "New York Stock Exchange volume was heavy at 911 million shares." - UPI, March 19
  • "The Standard & Poor's 500 index fell 17.26 to 1,299.29, while NYSE decliners led advancers 1,806 to 1,166." - UPI, March 19
  • "The Dow was pressured by IBM, which fell sharply after Morgan Stanley cut its target price to $195 from $210 due to revenue concerns." - UPI, March 19
  • "IBM fell 8 3/4 to 168 7/8." - UPI, March 19
  • "AT&T fell 2 5/8 to 79 following reports that it was planning to purchase a combined 30P stake with British Telecommunications in Japan Telecom Co., Japan's fourth largest phone company." - UPI, March 19
  • "General Electric rose 1 15/16 to 111 15/16 after Lehman Brothers increased its price target to $130 from $110 and kept its rating at 'outperform'." - UPI, March 19

Read more