Nasdaq Plunges 6 Percent in Four Sessions, Raising Questions About Indian Market Implications
Market Turmoil: US Stocks Plummet Amid Geopolitical Tensions and AI Trade Uncertainty
US stocks suffered significant losses on Wednesday, as renewed tensions in the Middle East drove up oil prices and fueled investor concerns over inflation. The Dow Jones Industrial Average plummeted 953.33 points, or 1.87%, to 49,918.78, while the S&P 500 sank 119.66 points, or 1.62%, to 7,266.99. The Nasdaq Composite Index shed 509.32 points, or 1.98%, to 25,169.50.
Eight of the 11 primary S&P 500 sectors closed in negative territory, with industrials and materials leading the declines at 3.41% and 2.45%, respectively. The technology sector continued to face pressure amid an ongoing rotation out of the AI trade, fueled by concerns surrounding the upcoming mega-IPOs of OpenAI and Anthropic.
The Nasdaq fell a cumulative 6% in the last four trading sessions, with a flood of new shares from companies looking to fund their AI ambitions raising questions on Wall Street about whether there will be enough buyers to absorb them. The resulting concentration of capital is generating short-term liquidity pressures that are weighing down broader risk assets.
