U.S. equities tumbled by the most in almost three months as the rotation away from high-flying tech stocks gained steam, with investors questioning the sustainability of lofty valuations. The S&P 500 Index retreated from a record high and was set for its biggest drop since June amid declines in Apple, Microsoft, Amazon and Facebook. The Nasdaq 100 fell more than 5% at one point, its biggest intraday decline since March. European stocks erased gains and finished more than 1% lower.
The Cboe Volatility Index — a measure of expected price swings for the S&P 500 Index known as Wall Street’s “fear gauge” — rose to the highest level since July. Bitcoin fell as much as 7.6%. Meanwhile, U.S. health officials have told states to prepare for a Covid-19 vaccine to be ready by Nov. 1, an aggressive goal that suggests availability just before the presidential election. Infectious disease expert Anthony Fauci warned of a potential surge in American cases from the coming long holiday weekend.