Stocks retreated once again Wednesday. The Dow lost 608 points to 24,583 while the S&P 500 declined 84 points to 2656, leaving both benchmarks in negative territory for the year. The Nasdaq Composite slid 329 points to 7108, the worst session for the index since 2011.
The S&P 500 fell for a sixth-consecutive session, with Technology and Communications falling after a flurry of disappointing earnings reports. Some of the stocks that have propelled the bull market led the selling Wednesday, including a 5.9% drop for the oft-mentioned “FAANG” group. U.S. Treasuries advanced the most since May, while Utilities and Real Estate stocks gained in a perceived “flight to safety.” The yield on the benchmark 10-year note slipped six basis points to 3.11%.
Technology stocks fell 4.4% on the session, with Texas Instruments dipping 7.4% to $93.51 after the company offered disappointing forward guidance. That sparked a sell-off in semiconductors, with all 15 chipmakers in the S&P 500 finishing down at least 3.8%. AT&T pushed the Communications sector lower, with shares falling 8.1% to $30.35 after missing Wall Street profit projections. Housing stocks were another weak spot, following a report which showed U.S. new home sales slipped to the lowest level since 2016 in September. One positive earnings report came from Boeing, with shares climbing 1.4% to $354.85 after the aerospace manufacturer beat consensus earnings estimates and raised forward guidance.
Breadth was negative on issues by 5:1 on the NYSE and by 6:1 on the Nasdaq. Composite NYSE trading volume was more than 4.6 billion shares.