Nasdaq, Dow slump lower. Is Salesforce’s selloff to blame?

While the Dow Jones Industrial Average (^DJI) closes 330 points, or 0.86%, lower, the Nasdaq Composite (^IXIC) saw an even greater decline of 1.08%, amounting to a loss of 183 points. The S&P 500 (^GSPC) also fell into the red zone and declined by 0.60%.

Yahoo Finance Anchor Julie Hyman reports on Thursday’s market performance after the closing bell, seeing the Nasdaq dragged lower by Salesforce’s (CRM) stock selloff on the cloud operator’s second-quarter guidance.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

It looks like the major average is closing at the lows of the day.

The dow now off 330 points down 9/10 of 1%.

We’ve been watching that three day pull back down by about 2.5% in that point a period of time, the S and P 500 off 6/10 of 1%.

But today, it is the NASDAQ, that is the loser of the day down more than 1% when all was said and done.

And there is primarily one culprit here when you’re at this and that culprit is sales force here.

We’ve got your heat map looking at the various software companies and we really have seen this big sell off in software down by 20%.

Today alone is sales force and that’s as the company’s growth is effectively slowing.

And there are a lot of concerns as we’ve been talking about today about what is happening with enterprise spending is all of the money flowing to chips.

For example, that’s certainly the investment dollars have been flowing.

And are we not seeing as much spending on things like sales forces software?

Now, we heard from Dan Ives earlier in the hour that this is just a speed bump, maybe the last nine months for the company is a transition period and it will come out of it.

But today investors are not terribly patient and it’s taking the stock into the red for the year that today’s decline by the way is the biggest single day drop in about 20 years for sales for shares.

But what’s more we are seeing really a broad base selling that was triggered by sales force here, Microsoft down 3.4% oracle down 5% Adobe down service.

Now, one of the other worst performers on the day in the S and P 500 down 12% crowd strike snow flake.

You get the idea.

There are just a few periods of pieces of green on the screen here today.

So a lot of it having to do with that ripple effect.

Josh.