Tech selloff pushes Nasdaq 9.8% below its record set last month
The Dow Jones Industrial Average dropped 1,153 points on Wednesday as technology and artificial intelligence stocks dragged Wall Street lower, while crude oil prices surged on renewed fighting in the Iran war. The decline reflected worries about the global flow of oil and uncertainty about what the Federal Reserve will do to get high inflation under control, according to the Associated Press.
The S&P 500 fell 1.5% after swinging sharply between gains and losses during the final hour of trading. The Dow Jones Industrial Average declined 1,153 points, or 2.2%. The Nasdaq composite slumped 1.7%, leaving it 9.8% below the record it set last month.
Technology shares, particularly those tied to artificial intelligence, were among the biggest losers, sinking and dragging Wall Street lower.
In the oil market, Brent crude prices leaped 7.3% to settle at $88.09 per barrel after fighting resumed in the Iran war, according to AP. Fighting resumed in the Iran war, raising worries about whether oil tankers could continue to move freely from the Middle East to customers worldwide.
The surge followed a period of sharp price swings. Brent had traded as low as $72 early in July and as high as $102 last week, with uncertainty over whether the United States and Iran could reach a deal to allow unrestricted tanker movement through the region.