Market Correction Hits US Exchanges - Technology Stocks Slide Down

At the US stock exchanges, investors took vigorous profits on Tuesday after the recent market rally. A cautious stance spread among investors, who eagerly await the upcoming employment data and statements from Fed Chairman Jerome Powell before the US Congress. The technology sector, in particular, was hit by waves of selling, amplified by growing concerns regarding overstretched valuations, which caused the Nasdaq 100 to tumble by 1.80 percent to 17,897.87 points. The Dow Jones Industrial lost 1.04 percent to 38,585.19 points, while the S&P 500 registered a decline of 1.02 percent to 5,078.65 points. Market experts warn of a sell-off wave that could intensify in the coming days with potential new indications of the future direction of monetary policy. According to Konstantin Oldenburger from CMC Markets, there is a certain nervousness in the air if Jerome Powell does not provide hints of an upcoming shift in interest rates in Congress, which could affect the attractiveness of growth stocks. The service sector was reflected in the targeted ISM Purchasing Managers' Index, which fell more sharply than expected in February, but still suggests growth. Ulrich Wortberg of Helaba sees no clear reasons for swift interest rate cuts in this. In the semiconductor sector, investors showed restraint, especially with Intel, which fell by 5.4 percent. AMD, on the other hand, was able to minimize losses and closed nearly unchanged. Reports circulated in the market about potential US measures that could block the export of new AMD AI chips to China. There was positive news from the retail sector. Target shares rose by 12 percent after exceeding quarterly expectations, and Walmart also enjoyed a gain of 1.25 percent in the Dow. At Davita, news of disappointing study data from a competitor's drug caused a share price jump of 7.1 percent. Meanwhile, the Euro moved close to the previous day's level, last trading at 1.0858 US dollars. The European Central Bank set the reference rate at 1.0849 dollars. Ten-year US Treasury bonds gained while their yield fell to 4.14 percent.