US Stocks Slide as Wall Street Grapples with Big Tech Earnings, Rising Yields, and Political Uncertainty

US stocks plunged on Wednesday as concerns over big tech earnings, climbing Treasury yields, and political uncertainty weighed heavily on all three major indexes. The Nasdaq Composite led the downturn, falling 1.8%, followed by the S&P 500 and Dow, both dropping 1.1%. At its lowest point, the Dow had plummeted by over 600 points before slightly recovering to a 450-point loss, marking the third consecutive day of market declines.

The stock market’s fragility is becoming more apparent as investors brace for potential economic shifts. The anticipation of weak tech earnings, particularly from giants like Nvidia and Apple, has put further pressure on the sector. Nvidia saw its stock drop by 3.6%, and Apple shares fell 3% as both companies prepare to release earnings reports next week.

Treasury yields have continued their upward trend, with the 10-year note briefly surpassing 4.25%, the highest level since July. Rising yields have rattled stock investors, adding to the volatility. Political uncertainty is also heightening market tensions, with Wall Street increasingly preparing for the possibility of a Trump victory in the upcoming election. Trump’s proposed policies, which include higher import tariffs and increased government borrowing, are expected to have significant market implications.

“The market remains fragile given the economic headwinds ahead,” warned José Torres, senior economist at Interactive Brokers. Investors are also processing mixed signals from the Federal Reserve, which may keep rates higher for longer in response to robust economic data.

The ongoing challenges, particularly in the tech sector, combined with rising yields and political concerns, point to continued market volatility.