Highlights

Major stock indexes sank Wednesday in a risk-off move powered by a selloff in big technology and AI shares on bubble fears. The Dow Jones industrial average dipped 0.5 percent, the S&P 500 lost 1.2 percent and the Nasdaq dropped 1.8 percent. US Treasury yields were steady, the dollar and oil prices gained.

Disappointing results from Oracle and Broadcom continued to weigh on the sector and Magnificent Seven shares took another hit with Amazon, Google and Nvidia leading the selloff on heavy rotation out of these momentum stocks.

Definition

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Description

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.

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