Stocks slump, Nasdaq enters correction territory on valuation fears, hawkish trade talk
U.S. stocks finished sharply lower Tuesday, with the tech-heavy Nasdaq index booking the biggest losses and entering a correction. The Dow Jones Industrial Average
DJIA,
fell about 633 points, 2.3%, to 27,501, while the S&P 500
SPX,
gave up 95 points or 2.8%, to close at about 3,332. The Nasdaq
COMP,
was down 465 points, 4.1% for the day, extending its month-to-date loss to 7.9%, the worst start to a September since the aftermath of the dot-com crash in 2001. Investors are concerned that the year’s biggest gainers may have flown too high, too fast. But markets were also rattled by comments from President Donald Trump about “decoupling” from China. Shares of Tesla Inc.
TSLA,
were down about 20% after the carmaker was excluded from the most recent rebalancing of the S&P 500, even as upstart alternative-fuel carmaker Nikola Corp.
NKLA,
jumped more than 40% on news of a partnership with General Motors Co.
GM,
