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The Nasdaq Composite fell 4% on Wednesday, marking its worst single-day decline since March 2022. The drop was driven by steep losses in technology stocks, including Apple and Microsoft, which fell over 5% each. The S&P 500 also declined by 2.3%, with the broader market reacting to concerns about slowing economic growth and rising interest rate expectations. Analysts attributed the selloff to profit-taking after a strong rally earlier in the year and uncertainty ahead of the U.S. presidential election.
This sharp decline signals heightened volatility in U.S. equities, particularly in the tech-heavy Nasdaq. Traders are now closely monitoring corporate earnings reports and Federal Reserve policy signals for further guidance. The selloff could also impact global markets, as U.S. tech stocks are a key driver of global equity performance. Investors may seek defensive sectors or reduce exposure to high-growth tech stocks in the short term.
For the Middle East and Gulf markets, the Nasdaq's decline could weigh on regional equity indices, especially as Saudi and Gulf investors have significant exposure to U.S. tech companies through ETFs and direct investments. Key watchpoints include the Fed's next rate decision, U.S. economic data releases, and geopolitical developments in the Middle East that could influence risk appetite.
