Nasdaq briefly enters correction before tech rebound eases losses
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The Nasdaq Composite faced heightened volatility on Tuesday, briefly entering correction territory as escalating global trade tensions triggered a broad-based sell-off in technology stocks. The index declined as much as 2% intraday, extending its losses to 10% from recent highs before a wave of dip-buying reversed much of the decline. The session closed with the Nasdaq down 0.3%, marking its eighth negative close in the past nine trading days.
Market sentiment remains fragile as traders assess the impact of retaliatory tariffs imposed by major economies in response to U.S. President Donald Trump’s trade policies. While the tech-heavy Nasdaq initially suffered from investor risk aversion, opportunistic buying in beaten-down stocks helped stabilize the market, reflecting continued optimism among tech investors.
The broader equity market also experienced turbulence, with the S&P 500 staging an intraday rebound before closing 1.2% lower. The Dow Jones Industrial Average bore the brunt of the selling pressure, declining by 670 points (-1.5%), weighed down by cyclical sectors and trade-sensitive stocks.
Looking ahead, investor focus will shift to key economic data releases that could influence market direction. On Thursday, the U.S. will report private sector employment growth alongside the S&P Global Services PMI and non-manufacturing PMI for February. The critical U.S. jobs report on Friday is expected to show an increase of 153,000 nonfarm payrolls, providing further insights into the strength of the labor market and potential implications for Federal Reserve policy.
As market participants navigate heightened uncertainty, volatility is likely to persist, with traders closely monitoring macroeconomic indicators and policy developments for signs of sustained momentum or further downside risk in the tech sector.
Market sentiment remains fragile as traders assess the impact of retaliatory tariffs imposed by major economies in response to U.S. President Donald Trump’s trade policies. While the tech-heavy Nasdaq initially suffered from investor risk aversion, opportunistic buying in beaten-down stocks helped stabilize the market, reflecting continued optimism among tech investors.
The broader equity market also experienced turbulence, with the S&P 500 staging an intraday rebound before closing 1.2% lower. The Dow Jones Industrial Average bore the brunt of the selling pressure, declining by 670 points (-1.5%), weighed down by cyclical sectors and trade-sensitive stocks.
Looking ahead, investor focus will shift to key economic data releases that could influence market direction. On Thursday, the U.S. will report private sector employment growth alongside the S&P Global Services PMI and non-manufacturing PMI for February. The critical U.S. jobs report on Friday is expected to show an increase of 153,000 nonfarm payrolls, providing further insights into the strength of the labor market and potential implications for Federal Reserve policy.
As market participants navigate heightened uncertainty, volatility is likely to persist, with traders closely monitoring macroeconomic indicators and policy developments for signs of sustained momentum or further downside risk in the tech sector.