It was one of the wildest days of the year for the U.S. stock market with technology shares as the battleground. Big Tech took a big hit to start the day on concerns about rising inflation and high valuations. The selling eventually spread to the rest of the market as the day went on.
But in an odd twist, tech shares rebounded in the afternoon as investors went back into names like Amazon and Netflix and left the rest of the market in the red.
The Dow Jones Industrials continued its downward trend, unloading 473.66 points, or 1.4%, to 34,269.16. Travelers Companies and Home Depot led the declines in the 30-stock Dow.
The S&P 500 lost 36.33 to finish at 4,152.10, as 10 out of 11 sectors registered losses.
The NASDAQ climbed to within 12.43 points of breakeven at 13,389.43, after shedding 2.2% at its low of the day.
Earlier in the volatile session, higher-priced technology shares led the market losses and the selling spilled over to everything from bank stocks to energy and industrials.
Then, many tech shares recouped most of the decline and closed in the green. Amazon and Netflix both rose more than 1%, while Facebook also reversed 0.2% higher. Apple and Alphabet also cut losses significantly.
Tesla shares, the poster boy for growth stocks with lofty valuations and expectations, fell 1.9%, but closed well off lows.
The latest headlines, including a labour shortage as well as a jump in Consumer Price Index in March, helped fuel inflation worries.
Job openings soared to a record high in March as employers struggled to find workers to fill those positions, the U.S. Labor Department reported Tuesday.
Even as help wanted jumped from February by 597,000, or 8%, to 8.12 million, hires rose just 215,000, or 3.7%, to just over six million.
Prices for 10-Year Treasurys lost ground, raising yields to 1.62% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices regained 51 cents to $65.43 U.S. a barrel.
Gold prices recouped $1.10 to $1,838.70 U.S. an ounce.