The S&P 500 ended below 4,000 for the first time since March 2021, and the Nasdaq technology index fell more than 4% on Monday, in a sell-off driven by mega-cap growth stocks as that investors were more concerned about rising interest rates.
The S&P 500 index closed down 3.20% at 3,991.24 points. The Dow Jones fell 1.99% to 32,245.70 points. The Nasdaq Composite technology index fell 4.29% to 11,623.25 points.
The Nasdaq closed at its lowest level since November 2020. Apple shares fell 3.3% and exerted the biggest negative influence on the Nasdaq and S&P 500.
“Markets are digesting the beginnings of a return to a more normal monetary policy environment,” said Kristina Hooper, chief global market strategist at Invesco in New York.
Investors are concerned about how aggressive the Federal Reserve will need to be to tame inflation. Last week, the US central bank raised interest rates by 0.50 percentage point.
Among the hardest hit in the recent sell-off are technology and growth stocks, whose valuations rely more heavily on future cash flows.
The energy sector slumped as oil prices plummeted.
Source: CNN Brasil
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