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Amazon's plunge puts the tech-heavy Nasdaq on pace for its worst month since the financial crisis

Key Points
  • The Nasdaq Composite index dropped 2.06 percent Friday. It was the fourth-straight week of losses for the Nasdaq.
  • Amazon sheds as much as 10 percent after bracing investors for a weaker holiday season during its quarterly update.
  • Other megacap tech stocks also took legs lower in morning trading but later recovered.
Amazon.com founder and CEO Jeff Bezos.
Getty Images

Amazon's disappointing third quarter results are sent the stock down and dragged the tech-heavy Nasdaq Composite lower.

The Nasdaq closed down 2.06 percent on Friday in its fourth straight week of losses. The index pared most of its losses in midday trading and is now roughly 2 percent lower on week and trading in correction levels, more than 10 percent off its 52-week high.

The Nasdaq is on pace for its worst month since October 2008 during the financial crisis, having lost roughly 10 percent this month.

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Amazon shed as much as 10 percent Friday after bracing investors for a weaker holiday season during its quarterly update. The stock closed down 7.82 percent for the day.

Other megacap tech stocks also took legs lower in morning trading but later recovered.

Netflix initially plunged 6 percent and is now essentially unchanged; Alphabet — which like Amazon also reported earnings Thursday — sank more than 5 percent before turning positive; Facebook skidded more than 4 percent by halved those losses in midday trading; and Apple and Microsoft each fell more than 2 percent before erasing nearly all of their losses.