Nasdaq Tumbles Over 2% as Tech Sell-Off Drags Down U.S. Stocks

U.S. stocks ended Thursday's session in negative territory, with a significant sell-off in technology and consumer-focused shares pushing the Nasdaq Composite to its worst performance of the major indices. The downturn reflected broad investor caution, with declining stocks significantly outnumbering advancers on both major exchanges.

A Broad-Based Decline

All three primary U.S. stock indices closed lower, according to market data from the close of trading. The losses were most pronounced in the tech sector, leading to a divergence in performance:

• The Dow Jones Industrial Average fell 0.97%.
• The S&P 500 declined by 1.21%.
• The NASDAQ Composite experienced the steepest drop, falling 2.15%.

The decline was widespread, with 1,928 stocks falling on the New York Stock Exchange compared to 806 advancers. The Nasdaq Stock Exchange saw a similar trend, with 2,265 decliners versus 1,123 advancers. The weakness was attributed to losses in the Consumer Goods, Telecommunications, and Consumer Services sectors.

Key Stock Movers

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A sharp drop in several mega-cap technology and growth stocks weighed heavily on the market. Tesla (NASDAQ:TSLA) was a significant laggard, with its shares plummeting 14.53%. Other major decliners included Amazon.com (NASDAQ:AMZN), which fell 4.57%, and Salesforce (NYSE:CRM), down 3.73%.

In contrast, some sectors showed resilience. On the Dow, industrial conglomerate Honeywell International (NASDAQ:HON) was the top performer, rising 5.70%. Healthcare giant Merck & Co (NYSE:MRK) also posted a solid gain of 2.36%, reaching a 52-week high. Within the S&P 500, defense contractor Lockheed Martin (NYSE:LMT) surged 10.54%.

Volatility Spikes, Commodities Diverge

Investor anxiety appeared to rise, as reflected by the CBOE Volatility Index (VIX), often called the market's "fear gauge." The VIX jumped 12.38% to 18.70.

In commodity markets, energy prices rallied while precious metals fell. Crude oil for September delivery rose over 6% to settle above $91 a barrel, with the Brent contract topping $100. Meanwhile, Gold Futures for August delivery fell 2.41%. The US Dollar Index Futures, which measures the greenback against a basket of currencies, ticked up 0.30%.