Nasdaq Falls to Low for the Year
NEW YORK (AP) _ The Nasdaq composite index fell Monday to its low point for the year as investors sold technology stocks on fears that earnings will be hurt by rising interest rates.
At midafternoon, the Nasdaq was down 191.47, or 5.65 percent, at 3,198.93, well below its lowest close of the year _3,321.29 on April 14, when the index sustained a devastating 355.49-point drop.
The Dow Jones industrial average also was down sharply, falling 227.54 to 10,399.31 at midafternoon.
Analysts said investors appear to have determined that with interest rates on the rise, the high price of technology stocks may not be justified by their earnings.
Last week, the Federal Reserve raised rates for the sixth time since last June. Recent economic reports have offered a mixed picture about whether the Fed’s rate increases are successfully slowing the economy. The next major report isn’t released until Thursday, when the Commerce Department issues a preliminary report on the gross domestic product during the first quarter.
With no positive economic news, many investors were either selling or staying out of the market. Volume was relatively light.
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