Market Maelstrom Unfolds

Wednesday 26th of March 2025 15:19:15

Stock market takes a hit as tech sector declines

The stock market took a hit yesterday, with the tech sector leading the way down. The Dow Jones Industrial Average fell 220 points, or 0.7%, to 32,433, while the S&P 500 dropped 1.2% to 3,921. The Nasdaq Composite slid 2.1% to 11,443.

The tech-heavy Nasdaq Composite was the biggest loser, with many of its biggest names taking a hit. Apple fell 2.5% to $143.50, while Amazon dropped 2.1% to $2,343. Google parent Alphabet fell 2.4% to $1,533, and Facebook parent Meta fell 2.2% to $340.

The decline came as investors grew concerned about the pace of growth in the tech sector. Many of the biggest tech companies have seen their stocks surge in recent years, and some investors are worried that they may have gotten ahead of themselves.

"This is just a correction," said Mark Linder, a fund manager at Wells Fargo. "The tech sector has been on a tear for a long time, and it's only natural that it would come back down a bit. I think we'll see a rebound soon."

Other sectors were also down, including the financials and energy. The yield on the 10-year Treasury note fell to 2.55%, its lowest level since October.

The decline came as investors digested a series of economic reports that showed the pace of growth in the US economy is slowing. The Commerce Department said that the US GDP grew at a 2.1% annual rate in the fourth quarter, down from 3.2% in the third quarter.

The Federal Reserve also released its latest Beige Book, which showed that the economy is growing at a moderate pace. While the report did not suggest that the economy is slowing, it did note that some businesses are seeing a slowdown in demand.

Despite the decline, many analysts remain optimistic about the market's prospects. The S&P 500 is still up 1.3% for the year, and the Dow Jones Industrial Average is up 0.5%.

"I think we're in for a bumpy ride, but I don't think it's the end of the world," said John Butcher, a portfolio manager at T. Rowe Price. "The economy is still growing, and the market will follow."