Wall St sells off, led by growth shares
STORY: The stock market selloff deepened on Monday with all three major indexes ending sharply lower, as investors grew more concerned about how much more aggressive the Federal Reserve will need to get to tame inflation.
The Dow finished 2% lower. The S&P 500 ended more than 3% lower - falling below 4,000 level for the first time since March of last year - while the Nasdaq ended down more than 4%, plunging deeper into bear market territory.
Robert Cantwell is a portfolio manager at Upholdings.
"A lot of investors out there, frankly, are scared because you had not only the Fed raising rates by 50 basis points, you had other Fed governors suggesting that a 75 basis point raise is still on the table in future meetings. And we're now coming up on the end of earnings season and just about every single company disappointed in their numbers. And there are very few places where you're seeing positive improvements in fundamentals right now for companies."
Among the hardest hit in the recent selloff have been technology and growth stocks, whose valuations rely more heavily on future cash flows.
Monday's downturn was led by mega-cap growth stocks including Apple, which weighed heavily on both the S&P 500 and Nasdaq…
Even the energy sector tumbled Monday as oil prices dropped.
In a sign of market pain, Goldman Sachs said U.S. equity mutual funds and exchange-traded funds saw $37 billion in outflows over the past four weeks, the biggest four-week total since late 2018.
