Nasdaq Plunges at Open Amid Tech Sell-Off
U.S. markets opened sharply lower on Wednesday, with the Nasdaq Composite down 1.28% right from the bell. The Dow Jones Industrial Average and S&P 500 followed suit, slipping 0.72% and 0.99% respectively, as investor sentiment soured over elevated valuations in the tech sector.
Semiconductor and Chinese Tech Stocks Lead Declines
Technology names were broadly in the red, with chipmakers hit hardest. Micron Technology tumbled more than 8%, Western Digital dropped over 4%, while AMD, Nvidia, and Oracle all posted notable losses.
Chinese ADRs also weakened significantly. Alibaba led the downturn with a drop exceeding 8%, followed by Baidu, which fell over 3%. Analysts attribute the sell-off to both sector-wide pressure and evolving external conditions affecting offshore Chinese equities.
Outlook: Volatility Expected to Persist
- Fed's rate path remains uncertain
- Global tech valuations under scrutiny
- Investors shifting to defensive positions
With earnings season approaching, experts warn of heightened market swings and advise a selective, fundamentals-driven approach.