US markets suffered a sharp decline on Wednesday, with major indexes sinking as heavyweight tech stocks led a widespread pullback fueled by valuation worries and lingering economic uncertainty.
The Nasdaq dropped 536.10 points (-2.3%) to 22,870.36, the S&P 500 fell 113.43 points (-1.7%) to 6,737.49, and the Dow Jones Industrial Average slid 797.60 points (-1.7%) to 47,457.22.
Disney’s Drop Adds Pressure After Record Close
The Dow retreated from its recent record high after Disney (DIS) shares sank nearly 8%.
Although the company posted stronger-than-expected earnings, revenue came in below forecasts—dragging the stock sharply lower.
Tech Giants Sell Off on Valuation Concerns
Big-name tech stocks also contributed to the market’s slump:
- NVIDIA (NVDA)
- Broadcom (AVGO)
- Alphabet (GOOGL)
All recorded notable declines as investors reassessed elevated valuations in the sector. The uncertainty surrounding unreleased US economic data—delayed by the government shutdown—added to pressure on tech and complicated expectations for the Federal Reserve’s interest-rate outlook.
Tech stocks lead a broad market slide: Why billionaire portfolios and the Nasdaq took a hit.
Hardware and Semiconductor Stocks Lead the Decline
The most severe losses occurred in computer hardware companies, with the NYSE Arca Computer Hardware Index plunging 7%.
Semiconductor, networking, and software stocks also weakened significantly, deepening the Nasdaq’s retreat.
Other sectors were not spared, as gold, financial, and airline stocks also moved sharply lower amid the broad-based selloff.
Mixed Performance in Global Markets
Trading outside the US painted a mixed picture:
- Asia-Pacific: Mostly higher
- Japan’s Nikkei 225 gained 0.4%
- China’s Shanghai Composite rose 0.7%
- Europe: Mostly lower
- France’s CAC 40 dipped 0.1%
- The FTSE 100 in the UK fell 1.1%
- Germany’s DAX slid 1.4%
Global sentiment remains cautious as investors balance mixed earnings results, delayed US data, and uncertainty surrounding upcoming Fed decisions.
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