More sharp declines in Big Tech stocks sent the Nasdaq composite down 4% Tuesday, the worst drop for the tech-heavy index since September 2020.
The Nasdaq is now down 20% so far this year as investors shun the ultra-pricey tech sector, which had made gangbuster gains for much of the pandemic.
With interest rates set to rise as the Federal Reserve steps up its inflation fight, traders are less and less willing to endure the lofty prices they had been paying for Microsoft, Facebook’s parent companay and other tech giants.
The S&P 500 fell 120.92 points, or 2.8%, to 4,175.20.
The Dow Jones Industrial Average fell 809.28 points, or 2.4%, to 33,240.18.
The Nasdaq fell 514.11 points, or 4%, to 12,490.74.
The Russell 2000 index of smaller companies fell 63.73 points, or 3.3%, to 1,890.47.