Wall Street sales have deepened, with Nasdaq confirming the correction by Reuters

By Lewis Krauskopf, Shreyashi Sanyal and Bansari Mayur Kamdar

(Reuters) – Wall Street’s major indexes ended significantly lower on Wednesday, with Nasdaq heavy technology confirming that it was in a correction after a multiple set of corporate earnings and investors continued to worry about higher US Treasury yields and the tightening of the Federal Reserve. monetary policy.

The Nasdaq ended its 10.7% decline with a record close on November 19 as shares closed the market. A correction is confirmed when an index closes at 10% or more below the record-breaking level.

The last correction on the Nasdaq was in early 2021, when the heavy technology index fell by more than 10% from February 12 to March 8. It was the fourth time the index had found itself in two years since the coronavirus pandemic shook the global market. in a correction.

On Wednesday, shares of Apple (NASDAQ 🙂 fell 2.1%, while most Nasdaq shares weighed, while Tesla (NASDAQ 🙂 and Amazon (NASDAQ 🙂 shares also dragged down the index.

In 2022, equities have had a tough start, amid rapid Treasury yields, amid concerns that the Fed will be aggressive in controlling inflation, particularly driven by technology and growth stocks. The benchmark has dropped by about 5% this year.

“Any onset of tightening often leads to high volatility and I believe there is always a risk that this could be a policy mistake and end the business cycle,” said Kristina Hooper, Invesco’s Chief Global Market Strategist. “So we have a lot. Panic.”

They fell 339.82 points, or 0.96%, to 35,028.65, the S&P 500 44.35 points, or 0.97%, 4,532.76, and 166.64 points, or 1.15%, 14.34.

Discretionary consumption fell the most among the S&P 500 sectors, falling by 1.8%, while finance fell by around 1.7% and technology by 1.4%.

Small capital fell by 1.6%.

Shares fell on Tuesday with a 2.6% drop in the Nasdaq after weak Goldman Sachsen (NYSE 🙂 results and a rise in Treasury yields. U.S. Treasury yields fell to a two-year high on Wednesday.

Investors are looking forward to next week’s Fed policy meeting with central bankers to clarify their intentions to keep inflation afloat. Last week’s data showed that US consumer prices rose sharply in December, ending with the largest annual rise in inflation in nearly four decades.

“There’s a lot of concern about how the next three or six months will play out in March, which is likely to start with a rate hike cycle,” said Michael James, managing director of shares at Wedbush Securities in Los Angeles. Angeles.

In the company’s news, Procter & Gamble (NYSE 🙂 shares rose 3.4% after the consumer goods company raised its annual sales forecast.

Bank of America Corp. (NYSE 🙂 had a 30% better-than-expected quarterly gain on earnings, and Morgan Stanley (NYSE 🙂 also reported fourth-quarter earnings that exceeded market expectations, following the erratic results of other banks. Shares of Bank of America rose 0.4% and shares of Morgan Stanley rose 1.8%.

The declining issue outperformed the NYSE with a 2.06 and 1 ratio; On the Nasdaq, the 2.09 and 1 ratios favored declines.

The S&P 500 released 13 new 52-week highs and seven new lows; The Nasdaq Composite recorded 23 new highs and 630 new lows.

About $ 11.4 trillion in shares traded on U.S. exchanges, compared to an average of $ 10 billion a day in the last 20 sessions.