Market Volatility Spikes as Tech Giants and Automakers Take a Hit

Stock market today: Tech drop sends Dow tumbling, S&P 500 and Nasdaq also fall

The stock market took a hit on Wednesday, with the Dow Jones Industrial Average plummeting more than 400 points as tech stocks led the way lower.

The Dow fell 427.92 points, or 1.2%, to 32,738.50, while the S&P 500 dropped 0.8% to 4,141.10. The Nasdaq Composite slid 1.3% to 12,449.50.

The decline in the tech-heavy Nasdaq was particularly sharp, with Apple, Microsoft and Alphabet all falling more than 2%. Amazon, another tech giant, fell 1.4%.

The selling was widespread, with only a handful of stocks in the S&P 500 managing to rise. Energy and financial stocks were among the few bright spots, as oil prices rose and bond yields fell.

The market's decline came as investors continued to grapple with the implications of higher interest rates and the ongoing war in Ukraine. The yield on the 10-year Treasury note fell to 2.34%, from 2.41% on Tuesday.

The Dow has now fallen for three straight days, while the S&P 500 has dropped for four. The Nasdaq has fallen for five days in a row.

Despite the recent volatility, many investors remain optimistic about the market's long-term prospects. The S&P 500 is still up more than 2% for the year, and the Dow is up more than 1%.

"The market is just going through a normal correction," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "We're seeing a bit of a rotation out of tech and into other areas of the market, but at the end of the day, I think the market is still in good shape."