Wall Street ends significantly lower with Nasdaq confirming correction | Financial Market News

The Nasdaq technology compound ended trading on Wednesday, down 10.7 percent from its November 19 closing record.

Wall Street’s major indexes ended significantly lower on Wednesday, confirming that heavy Nasdaq technology was in a correction, after a multiple set of corporate gains and investors continued to worry about higher U.S. Treasury yields and the Federal Reserve tightening monetary policy.

The Nasdaq was down 10.7 percent from a record high on November 19 as shares closed the market. A correction is confirmed when an index closes 10 percent 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 percent from February 12 to March 8.
On Wednesday, Apple shares fell 2.1 percent, most of the weight on the Nasdaq, and the fall in Tesla and Amazon also dragged 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 S&P 500 is down about 5 percent this year.

“The onset of the 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’re very scared.”

The Dow Jones Industrial Average fell 339.82 points or 0.96 percent to 35,028.65, the S&P 500 44.35 points, or 0.97 percent to 4,532.76, and the Nasdaq Composite 166.64 points, or 1214 points, to 1214 puncture.

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

Russell 2000 small capital fell 1.6 percent.

Shares fell on Tuesday, with Nasdaq falling 2.6 percent after weak Goldman Sachs results and Treasury yields rose. 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.

“We’ve had some sales here and that has been in line with that concern about the Fed and interest rates,” said Keith Lerner, chief investment officer at Truist Advisory Services.

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

Bank of America Corp. saw a 30 percent better-than-expected rise in quarterly earnings, while Morgan Stanley also reported fourth-quarter earnings that exceeded market expectations following the uneven results of other banks. Shares of Bank of America rose 0.4 percent, and shares of Morgan Stanley rose 1.8 percent.

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.