Nasdaq ends down 1% as tech shares fall; Treasury auction weak
stocks ended lower on Wednesday, with the Nasdaq falling 1% as technology shares declined and weak demand in a 10-year Treasury auction stoked investor jitters in choppy trade.
Indexes started the day higher with a surge in tech shares, and both began to lose steam in afternoon trading. With investors still nervous after a recent steep selloff in global stocks, equities pared gains further after the Treasury auction.
All three indexes went red, and losses steepened just before the close. The S&P 500 technology index ended down 1.4% and was the biggest drag on the benchmark index.
«There's just a lot to worry about over the next eight weeks or so, so I'm expecting more volatility. I wouldn't be surprised if after a few days of rally you have another small selloff,» said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Investors have been worried about a possible U.S. recession and weaker forecasts from some big U.S. companies, among other factors.
The Dow Jones Industrial Average fell 234.21 points, or 0.6%, to 38,763.45, the S&P 500 lost 40.53 points, or 0.77%, to 5,199.5 and the Nasdaq Composite dropped 171.05 points, or 1.05%, to 16,195.81.
Lindsey Bell, chief strategist at 248 Ventures in Charlotte, North Carolina, said investors also may be taking profits after Tuesday's rebound in stocks.
«You don't just have the fall we had on Monday and it's done. You typically test the lows again before we can move out of this downtrend,» she said.
On Monday, the Nasdaq and S&P 500 fell
