U.S. stocks slid sharply Wednesday as investors sought safe havens from rising interest rates and the feared reversal of years of consistent gains for technology companies.
The Dow Jones Industrial Average dropped 831 points Wednesday afternoon, losing 3.2 percent on the day. The Nasdaq composite fell 4 percent and the S&P 500 lost 3.3 percent as U.S. stocks took their worse daily losses since February. The Dow's Wednesday skid was its third-worst daily loss by points.
Stocks in tech companies that led the bull market of the past decade suffered the heaviest losses as investors pull back from the sector. Shares of Amazon, Netflix, Facebook, Apple, and Twitter all fell sharply throughout the day. A rash of security breaches, hacks, scandals, and federal oversight have made the sector less attractive to traders.
Investors have also been shaken by rising interest rates and bond yields triggered in part by recent Federal Reserve rate hikes. Higher borrowing costs typically narrow corporate profit margins and dampen investment, pushing traders toward Treasuries and other products seen as safe havens.
The Fed has raised interest rates eight times since 2015, six times since President Trump took office, and is expected to do so again in December. The central bank most recently raised rates in September, increasing the Fed’s baseline interest rate range for the third time in 2018.
Read more in The Hill.