The Nasdaq ended sharply lower on Tuesday as investors dumped megacap growth stocks to seek shelter in more defensive parts of the market, amid concerns on rising interest rate and uncertainty over an upcoming jobs report.
The S&P 500 fell on Tuesday amid selling in Big Tech and other high-growth stocks, erasing the benchmark’s strong start to the month.
The broad market index closed the session 0.7% lower at 4,164.66 after dropping 1.5% at its low.
Pressure on some of the globe’s largest technology companies sent the Nasdaq Composite down 1.9% to 13,633.50 for its worst day since March.
Apple, the largest publicly traded company in the U.S., fell 3.5%. Google-parent Alphabet lost 1.6%, Facebook shed 1.3% and electric car maker Tesla dropped 1.7%. Investors did not spare the market’s chipmakers, with Nvidia and Intel losing 3.3% and 0.6%, respectively.
The Dow Jones Industrial Average ended the day in the green thanks to strong performance in Dow Inc and Caterpillar. The 30-stock benchmark closed 19.8 points, or 0.1%, higher to 34,133.03 after dropping more than 300 points at one point Tuesday.
Reasons for the downward pressure varied, but strategists cited a mix of concerns about rising inflation, fears the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax increases in the months ahead.
U.S. equities hit their lows of the day following Treasury Secretary Janet Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating.
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