New York (CNN Business)It’s another rough day on Wall Street, as the tech-heavy Nasdaq Composite (COMP) is tumbling once again.
The market rout that started last week — and included the worst day for stocks since June — is clearly not over. Several factors are weighing on investors’ appetite for risky bets: worries about a resurgence of Covid-19 infections in the cooler winter months and the knock-on effect of the economic recovery, uncertainty surrounding the November presidential election and renewed US-China tensions. President Donald Trump said Monday that he wasn’t “happy at all” with China and spoke about an economic “decoupling.”All three major stock indexes are sharply in the red at the start of the shortened Labor Day trading week, but they have bounced back from their session lows.The Nasdaq was down 2.6% in the early afternoon, while the S&P 500 (SPX), the broadest measure of the US stock market, dropped 1.7%.Read MoreThe Dow (INDU) declined the least but was still down 1.3%, or more than 350 points.Is September going to be a correction month for tech stocks? Maybe. It’s early days.”The US equity volatility in recent days is a reversal of the market excesses that had built up over summer months,” wrote analysts at Oxford Economics in a note to clients.Traders have been taking some profits after the summer rally. On top of that, the uncertainty of the past days has made for the “perfect storm” for stocks, Sylvia Jablonski, capital markets strategist at Direxion, said in emailed comments.Apple (AAPL), for example, fell more than 12% between last week’s Tuesday peak and Friday’s close. Google parent Alphabet (GOOGL) dropped more than 8% in the same period. Both stocks were sharply lower on Tuesday.Tesla (TSLA), another popular Nasdaq stock, was also getting clobbered Tuesday, falling more than 16% in the early afternoon. The car maker was snubbed by the S&P after many investors expected the company to be added to the index. Making matters worse, General Motors (GM) just took an 11% stake in its competitor Nikola (NKLA), which makes electronic trucks. Nikola shares climbed more than 49%.Japan’s Softbank (SFTBF) is looking to feel the most pain from this apparent correction. The conglomerate bought billions of dollars worth of options in stocks it already owned. But when the market turned, the losses started pouring in. So far, roughly $10 billion of Softbank’s market value has been wiped out.And the market wobbles were visible in other asset classes as well: US Treasury bond yields slipped to 0.68% on the 10-year note as bond prices rose. The US dollar, measured by the ICE US Dollar Index, bounced higher. Gold prices, which had earlier been lower, climbed in afternoon trading. Oil futures stayed in the red.