Stocks fell Wednesday as the market's recovery attempt failed, driven by declines in tech stocks and rising Treasury yields
On Wednesday, stocks closed lower as the market's recovery attempt from Monday’s sell-off failed, reported CNBC.
The Dow Jones Industrial Average fell by 234.21 points, or 0.60 percent, to 38,763.45. The S&P 500 declined by 0.77 percent, ending at 5,199.50, while the Nasdaq Composite dropped by 1.05 percent, closing at 16,195.81.
Earlier in the session, the Dow surged 480.30 points, and the S&P 500 jumped 1.73 percent. The Nasdaq rose by more than 2 percent at its peak. However, a downturn in Nvidia and other major tech stocks led to an afternoon slump.
Nvidia dropped 5.1 percent, Super Micro Computer shares plummeted 20.1 percent after missing fiscal fourth-quarter earnings estimates, Tesla fell by 4.4 percent, and Meta Platforms decreased by 1 percent.
The benchmark 10-year Treasury yield rose about six basis points to 3.95 percent, returning to its pre-weak jobs numbers level from Friday, which had raised economic downturn concerns.
The Cboe Volatility Index, known as Wall Street’s “fear gauge,” traded at nearly 28, down from roughly 65 on Monday, indicating reduced but still elevated investor fears compared to earlier in the month.
“There’s been some reassurance over the last couple days that things have calmed down a bit. But there are still quite a few unknowns on the horizon, such as how much more unwind there is on the yen carry trade, as well as geopolitical headwinds,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
On Tuesday, the S&P 500 and Nasdaq each advanced by 1 percent, while the Dow added nearly 300 points. Conversely, Monday saw the Dow and S&P 500 post their worst session since 2022 due to recession worries and the unwinding of the yen carry trade.
