
U.S. stock had a mixed day on Wednesday, with tech-heavy Nasdaq Composite having its worst performance since 2022, the benchmark S&P 500 falling by 1.4%, and blue chip Dow Jones Industrial Average setting another record.
Tech stock fell sharply on concerns that chip exports to China will come under even more scrutiny from regulators. Chipmaker Nvidia fell by 6.6%, Meta lost 5.7%, and Microsoft saw a 1.33% decline. As a result, the Nasdaq dropped by 2.7% or 512.42 points to close at 17,996.92. This was the biggest single-day decline for the index since December 2022.
The tech stock sell-off also had a significant impact on the performance of the S&P 500. The benchmark index closed at 5,588.27, falling by 1.39% or 78.93 points.
Dow Jones, on the other hand, climbed 0.6% or 243.60 points to break the 41,000 mark for the first time and close at 41,198.08. It benefited from the continued rally of United Healthcare, which gained another 4% after jumping 6.5% the day before, while Johnson & Johnson surged 3.6%.
According to experts, the current state of US stocks indicates that investors are beginning to move from tech and focus on other areas of the market.
“Tech stocks are passing the baton to other stocks. Sure, we may not see prices move up as quickly as they have. But this is the kind of movement that strengthens the foundation of a bull. It means that this rally can be stronger and live longer eventually,” Callie Cox, chief market strategist at Ritholtz Wealth Management, recently told Yahoo Finance.