By Conor White
Wall Street is looking for answers after Wednesday's 831 point drop in the Dow Industrial, the index's worst day since Feb. 2.
"What you're starting to see here is that there's just general nervousness," Daniel Ives, managing director of equity research at Wedbush Securities said Thursday in an interview on Cheddar.
President Trump's continuing trade war, rising interest rates, and poor performances by FAANG stocks like Facebook ($FB) and Netflix ($NFLX) are all contributing to investors' anxiety, but Chad Morganlander, portfolio manager at Washington Crossing Advisors, doesn't think now is the moment to panic.
"This isn't a market meltdown," he told Cheddar Thursday. "This is the farthest thing from it ー this is just a couple of bad weeks."
The markets dropped again on Thursday, but the decline was less severe than Wednesday's sell-off, thanks to gains from companies like Facebook and Google parent Alphabet ($GOOGL).
FAANG stocks, which also include Apple ($AAPL) and Amazon ($AMZN), lost roughly $175 billion in market cap Wednesday, the group's worst one-day loss ever. Both Morganlander and Ives said there's no reason to dump tech stocks yet ー though investors shouldn't rely on them exclusively, either.
"I would advise investors that haven't seen volatility to actually just keep a more balanced approach," Morganlander said. "Don't be into all these high-flying tech names that perhaps don't have earnings and real quality behind them."
For full interview click here.