In a market correction fueled by profit-taking, stocks experienced a significant downturn on Wednesday. The Dow Jones Industrial Average fell by 312 points, or 0.8%, while the broader S&P 500 declined by 1.1% and the Nasdaq Composite dropped by 1.2%.
According to Keith Buchanan, senior portfolio manager at Globalt Investments, this pullback is a natural response to the market’s recent overbought conditions. He emphasized that the decline appears to be more technical rather than due to underlying fundamental factors.
The S&P 500 was heavily impacted by FedEx, which witnessed a drop of over 10%. FedEx’s disappointing revenue outlook for the fiscal year and underwhelming second-quarter results, failing to meet expectations on both the top and bottom lines, contributed to its diminished performance. Consequently, the Dow Jones Transportation Average, which includes FedEx among its 20 stocks, also experienced a decline of 138 points or 0.9%.
Meanwhile, Google-parent Alphabet emerged as one of the top-performing stocks in the S&P 500. The company saw its stock rise by over 2% and achieved a new 52-week high.
Source (CNBC)
