US stock markets ended in the red with the Nasdaq leading losses after falling more than 330 points. The broader S&P 500 and Dow Jones also moved lower as investors reacted to weakness in growth stocks and rising market caution.
The selloff was stronger in small cap stocks, while the VIX volatility index edged higher during the session.
Nasdaq falls 331 points as tech stocks face pressure
The Nasdaq closed at 25,759.54 after dropping 331.19 points or 1.27%. The index touched an intraday high of 26,026.17 before reversing lower.
Trading volume remained heavy at nearly 403 million shares, showing strong market activity during the decline.
The sharp fall in the Nasdaq highlights continued pressure on technology and growth focused companies after recent market rallies.
S&P 500 and Dow Jones close lower
The S&P 500 fell 58.79 points or 0.79% to settle at 7,344.26. The benchmark index opened higher at 7,375.75 but failed to hold gains during the session.
Meanwhile, the Dow Jones Industrial Average slipped 135.79 points or 0.27% to close at 49,550.33.
The Dow traded between a high of 49,696.53 and a low of 49,245.11 during the day.
The weaker close across all three major indexes signals growing caution among investors after recent highs in US equities.
Small Cap 2000 drops 1.56% as market volatility rises
The Small Cap 2000 index posted the biggest percentage decline among the major indexes. It fell 43.32 points or 1.56% to end at 2,731.78.
The index reflects weakness in smaller companies, which are often more sensitive to economic uncertainty and interest rate expectations.
At the same time, the S&P 500 VIX index, widely known as Wall Street’s fear gauge, rose 1.23% to 18.04.
The rise in volatility suggests investors are becoming slightly more defensive amid broader market weakness.
Overall, US markets witnessed broad based selling pressure with technology and small cap stocks leading declines while volatility continued moving higher.