As investors continue to fret about rising interest rates, Wall Street grew frantic yesterday, sending the Dow Jones Industrial Average down nearly 832 points — the third-worst point decline in history.
With all 30 Dow stocks in the red, the index dipped by more than 3 percent to below 26,000 points. The S&P 500, in its fifth consecutive decline, fell nearly 3.3 percent. Falling more than 4 percent to under 7,500 points, the Nasdaq Composite saw its largest sell-off since June 2016.
The tech sector bore the brunt of the plunge, with Amazon.com Inc. sliding 6 percent. The e-tail giant just last month became the second-ever publicly traded United States company that exceeded $1 trillion in stock market value. Yesterday’s close saw Amazon’s market cap at less than $857 billion.
Major footwear names, particularly growth stocks like Nike Inc., were also hit hard. The sportswear giant ended the trading day down 6.8 percent, with its stock dropping as much as 7 percent in market hours.
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Additionally, DSW Inc. tumbled 13 percent on a day that followed news of its unique $375 million deal with Authentic Brands Group for Camuto Group. It remains unclear how much of the dip in stock is due to investor reaction to the buyout or the general market trend.
Other retailers including Nordstrom Inc., Target Corp. and Walmart Inc. also saw a notable drop by market close.
The decline also comes as uncertainty brews over President Donald Trump’s trade war. The U.S. has already slapped tariffs on $250 billion in Chinese imports this year as Beijing retaliates with levies on $110 billion of American goods.
In a statement, the White House downplayed Wednesday’s sharp sell-off. “The fundamentals and future of the U.S. economy remain incredibly strong,” said press secretary Sarah Sanders.
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