The Nasdaq led a sharp decline in the stock market Tuesday, as traders grew nervous ahead of the Federal Reserve’s decision on interest rates Thursday.
Traders fretted that the Fed may boost interest rates by as much as 50 basis points to combat inflation, while a 7% decline in GMweighed on the Dow.
Still, it was the Nasdaq that led the way lower, losing 1.6% on the day. The chip sectorlost nearly 4%, led by a 15% plunge in shares of Marvell, which is buying Intel’sunprofitable communications chip business for $600 million.
The Nasdaq fell 33 to 2100, the S&P 500 lost 11 to 1239, and the Dow fell 120 to 10,925. Volume rose to 2.2 billion shares on the NYSE, and 1.84 billion on the Nasdaq. Decliners led 23-9 on the NYSE, and 22-7 on the Nasdaq. Downside volume was 79% on the NYSE, and 87% on the Nasdaq. New highs-new lows were 35-231 on the NYSE, and 61-149 on the Nasdaq.
Vitesselost 20% on news that it will be de-listed from the Nasdaq.
InFocusshed 17% on a warning.
Microneticssoared 22% on its results.