US stocks took a bit of a tumble on Tuesday, this week, with technology losses leading the way to further complicate the tough start to this year.
Specifically, the Dow Jones Industrial Average closed down 809 points, on Tuesday, which is a loss of 2.4 percent. The Standard & Poors 500 index took a similar dip, falling 2.8 percent by the end of day. Finally, the Nasdaq suffered the most, shedding 4 percent of its value just before the final bell.
On a broader note, the Nasdaq Composite is down more than 21 percent on the year, so far, sinking into a bear market with major losses from Alphabet, Apple, Meta, Netflix, and Tesla; all down from record highs. Tesla led the group of losses with a 10 percent drop in value.
In addition, the Standard & Poors has already shed 13 percent of its value on the year. This means the index has already long surpassed the benchmark that investors would have considered a correction.
Finally, the Dow Jones is down more than 9 percent on the year. Conclusively, all three of the major US stock indexes have closed out the past three consecutive weeks with losses. This is contrary to the brief comeback they seemed to be making earlier in the year, mostly because of growing concerns over potential business revenue loss risk.
This trend comes as somewhat of a surprise as the gains for this year, so far, have been quite admirable, especially in the tech sector. As many expected, though, several factors are contributing to market struggles. Most notably the Ukraine-Russia conflict coupled with higher inflation has made this one of the toughest years of late. And now that the Federal Reserve bank is looking for ways to quickly add some pressure to price growth that will cut into corporate profits, the outlook is cloudy at best.
Presently, some economists and investment experts have expressed dire concern that the US economy is on its way to a major recession. This could happen as soon as the end of this year or perhaps sometime next year, depending on how well the Fed is able to fight inflationary measures and other big global issues.