Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street sell-off deepens, Nasdaq confirms correction

Stock MarketsJan 19, 2022 08:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 18, 2022. REUTERS/Brendan McDermid

By Lewis Krauskopf, Shreyashi Sanyal and Bansari Mayur Kamdar

(Reuters) - Wall Street's main indexes ended sharply lower on Wednesday, with the tech-heavy Nasdaq confirming it was in a correction, after a diverse set of corporate earnings and as investors continued to worry about higher U.S. Treasury yields and the Federal Reserve tightening monetary policy.

The Nasdaq ended down 10.7% from its Nov. 19 closing record high, as stocks sold off into the market close. A correction is confirmed when an index closes 10% or more below its record closing level.

The Nasdaq's last correction was in early 2021, when the tech-heavy index fell more than 10% from Feb. 12 to March 8. It was the fourth time in the two years since the coronavirus pandemic shook global markets that the index has found itself in a correction.

On Wednesday, Apple shares (NASDAQ:AAPL) fell 2.1%, weighing most on the Nasdaq, while declines in Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN) also dragged on the index.

Stocks have gotten off to a rocky start in 2022, as a fast rise in Treasury yields amid concerns the Fed will become aggressive in controlling inflation has particularly hit tech and growth shares. The benchmark S&P 500 is down about 5% so far this year.

“Any beginning of tightening often results in significant volatility and I think there is always that risk that there is a policy error and it ends the economic cycle," said Kristina Hooper, chief global market strategist at Invesco. "So we just have a lot of apprehension.”

The Dow Jones Industrial Average fell 339.82 points, or 0.96%, to 35,028.65, the S&P 500 lost 44.35 points, or 0.97%, to 4,532.76 and the Nasdaq Composite dropped 166.64 points, or 1.15%, to 14,340.26.

Consumer discretionary fell most among S&P 500 sectors, dropping 1.8%, while financials dropped about 1.7% and technology slid 1.4%.

The small-cap Russell 2000 fell 1.6%.

Stocks had tumbled on Tuesday, with the Nasdaq falling 2.6%, after weak results from Goldman Sachs (NYSE:GS) and a spike in Treasury yields. U.S. Treasury yields eased on Wednesday from two-year highs.

Investors are looking to next week's Fed policy meeting for more clarity on central bankers' plans to rein in inflation. Data last week showed U.S. consumer prices increased solidly in December, culminating in the largest annual rise in inflation in nearly four decades.

"There's a fair amount of anxiety in terms of how the next three to six months are going to play out with a rate-hike cycle set to start likely in March," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

In company news, shares of Procter & Gamble (NYSE:PG) rose 3.4% after the consumer goods company bumped up its annual sales forecast.

Bank of America Corp (NYSE:BAC) reported a better-than-expected 30% jump in quarterly profit, while Morgan Stanley (NYSE:MS) also reported fourth-quarter profit which beat market expectations, following uneven results from other banks. Bank of America shares rose 0.4%, while Morgan Stanley shares gained 1.8%.

Declining issues outnumbered advancing ones on the NYSE by a 2.06-to-1 ratio; on Nasdaq, a 2.09-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and seven new lows; the Nasdaq Composite recorded 23 new highs and 630 new lows.

About 11.4 billion shares changed hands in U.S. exchanges, compared with the 10 billion daily average over the last 20 sessions.

Wall Street sell-off deepens, Nasdaq confirms correction
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (24)
Jay Garrelts
Jay Garrelts Jan 20, 2022 2:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
89% of stocks Are owned by those in the top 10% of wealth in the United States
Bill Riley
Bill Riley Jan 19, 2022 10:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Remember Jimmy Carter, gas and oil shortage caused inflation, and
Benjamin USA
Benjamin USA Jan 19, 2022 10:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Blaming Carter for gas shortages and inflation is beyond ignorant
Chris Hall
Chris Hall Jan 19, 2022 9:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FED has allowed shorts to take over
Fong SH
Fong SH Jan 19, 2022 9:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China's sovereign fund selling in US markets, simple, bringing money home to protect her economy. eg like reduction in holdings of US debts. That simple.
Ron Love
Ron Love Jan 19, 2022 3:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Edge higher? 🤦‍♂️
in defiant
in defiant Jan 19, 2022 2:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
now its going again for correction hahah free fall down
Dave Jones
Dave Jones Jan 19, 2022 2:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These articles are just drivel following the same cookie cutter format. The comments are where you get the truth
Luis Sa
Luis_S Jan 19, 2022 2:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
S&P rose to the bottom
Chad RicherThanYou
Chad RicherThanYou Jan 19, 2022 2:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You cannot print your way to prosperity
cedrik marchand
cedrik marchand Jan 19, 2022 2:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
up for 5 min seriously
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email