New York – A broad-based selloff in technology stocks weighed heavily on the Nasdaq Composite on Wednesday, overshadowing gains in other sectors. The broader market also came under downward pressure, with the S&P 500 closing lower.
The tech-heavy Nasdaq fell 2.2%, marking a continuation of the recent rotation away from high-growth stocks. Mega-cap tech companies, including Apple, Netflix and Alphabet, contributed significantly to the index’s losses.
The semiconductor sector was hit particularly hard, with shares plummeting after reports of potential new export controls on advanced chip technology to China. The VanEck Semiconductor ETF (SMH) and Nvidia Corporation, a leading chipmaker, suffered substantial declines.
In contrast, the Dow Jones Industrial Average managed to eke out a modest gain, buoyed by a solid performance from healthcare giant UnitedHealth Group. The Russell 2000 index, which tracks small-cap stocks, was volatile but ultimately closed in positive territory, extending its recent rally.
Investors are increasingly focused on the Federal Reserve’s monetary policy and its potential impact on the economy. Expectations of interest rate cuts later this year have boosted sentiment for cyclical sectors and smaller companies, while dampening enthusiasm for growth-oriented technology stocks.
