Highlights
A global selloff in high-flying chip stocks and other big tech shares continued Tuesday to depress the major stock averages. The Dow Jones industrial average eased 0.1 percent while the S&P 500 lost 1.4 percent and the Nasdaq was off 2.2 percent. Bond yields and oil prices declined while the dollar rose.
Analysts described the selloff as a correction in the long-running momentum trade in chips and other shares linked to artificial intelligence. The broader market actually was mostly higher on the day with airlines, grocery stores, pharma, and regional banks among the best performers.
Losses overnight centered in South Korea's chip-heavy market extended into the US hours. Nvidia, Micron, Sandisk, Intel and Qualcomm were among the hardest hit US-traded shares.
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.