Nasdaq Plummets To Lowest Level In Over A Year In Sell-Off On Wall Street

Business

After recovering from an early sell-off in the previous session, stocks showed a substantial move back to the downside during trading on Tuesday. The tech-heavy Nasdaq led the way lower, plunging to its lowest closing level in over a year, while the Dow and the S&P 500 tumbled to one-month closing lows.

The major averages fell to new lows for the day going into the close of trading. The Dow dove 809.28 points or 2.4 percent to 33,240.19, the Nasdaq plummeted 514.11 points or 4 percent to 12,490.74 and the S&P 500 slumped 120.92 points or 2.8 percent to 4,175.20.

The sell-off on Wall Street came as elevated inflation, Covid-19 lockdowns in China and the ongoing war in Ukraine continued to weigh on investors’ minds as they digest the latest earnings news.

Airline stocks turned in some of the market’s worst performances on the day, resulting in a 4.9 percent nosedive by the NYSE Arca Airline Index.

Substantial weakness was also visible among semiconductor stocks, as reflected by the 4.4 percent plunge by the Philadelphia Semiconductor Index.

Biotechnology stocks also showed a significant move to the downside, dragging the NYSE Arca Biotechnology Index down by 4.3 percent.

Brokerage, networking and steel stocks also saw considerable weakness, reflecting the broad based selling pressure on Wall Street.

On the U.S. economic front, a report released by the Commerce Department showed new orders for U.S. manufactured durable goods rebounded in the month of March.

On the U.S. economic front, a report released by the Commerce Department showed new orders for U.S. manufactured durable goods rebounded in the month of March.

The report showed durable goods orders climbed by 0.8 percent in March after tumbling by a revised 1.7 percent in February.

Economists had expected durable goods orders to jump by 1.0 percent compared to the 2.2 percent slump originally reported for the previous month.

Excluding orders for transportation equipment, durable goods orders surged by 1.1 percent in March after falling by 0.5 percent in February. Ex-transportation orders were expected to increase by 0.6 percent.

A separate report released by the Commerce Department on Tuesday showed a steep drop in U.S. new home sales in the month of March.

The Commerce Department said new home sales plunged by 8.6 percent to an annual rate of 763,000 from an upwardly revised rate of 835,000 in February.

Economists had expected new home sales to decrease by 0.9 percent to a rate of 765,000 from the 772,000 originally reported for the previous month.

The Conference Board also released a report showing a modest decrease in U.S. consumer confidence in the month of April.

The Conference Board said its consumer confidence index edged down to 107.3 in April from an upwardly revised 107.6 in March.

Economists had expected the consumer confidence index to dip to 106.8 from the 107.2 originally reported for the previous month.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index tumbled by 1.4 percent.

Meanwhile, European stocks moved mostly lower over the course of the session. While the U.K.’s FTSE 100 Index bucked the downtrend and inched up by 0.1 percent, the French CAC 40 Index fell by 0.5 percent and the German DAX Index plunged by 1.2 percent.

In the bond market, treasuries extended the rebound seen over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, decreased by 5.4 basis points 2.772 percent.

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