Dow slides by more than 450 points and tech stocks continue to sell off
The Dow fell 464 points, or 1.1%, retreating from a record high reached a day ago. The S&P 500 fell 0.9%. The Nasdaq Composite fell 1%, extending its losses after logging its worst day since 2022 on Wednesday.
Energy was the only positive S&P 500 sector on Thursday.
“A correction was overdue and no one will be surprised if the market regains its momentum by the end of earnings season,” wrote Louis Navellier, chairman of Navellier & Associates, in a Thursday note.
Investors have this weekmoved out of the Magnificent Seven tech stocks that powered the market to repeated record highs this year. The shift comes after cooling inflation data and stronger-than-expected retail sales data bolstered expectations that the Federal Reserve will begin cutting sky-high interest rates as soon asSeptember.
Shares of smaller companies that tend to do well in a lower-rate environment began rallying last week, helping the Dow reach fresh highs. But small-cap stocks have pared back their gains in recent sessions: The Russell 2000, which tracks the performance of US small caps, fell 2% on Thursday.
Shares of Nvidia, Microsoft, Meta Platforms, Amazon, Apple and Alphabet are on pace to close the week lower, while Tesla is on track to end slightly higher.
Tech stocks also took a hit this week after Bloomberg reported Tuesday that the Biden administration is mulling plans to impose more sanctions on Chinese tech firms and to heighten semiconductor trade restrictions between the US and China.
This is a developing story and will be updated.
Despite the market volatility, some investors are still seeing opportunities in the business sector, potentially looking to invest in industries that could benefit from interest rate cuts. The ongoing discussions about additional sanctions on Chinese tech firms could impact certain businesses related to technology and semiconductors.
