The Dow Jones Industrial Average dropped more than 600 points Wednesday morning as selling accelerated across Wall Street. The S&P 500 fell about 0.4%, while the Nasdaq Composite also moved lower. A market screenshot taken at 10:18 a.m. ET showed the Nasdaq at 24,667.02, roughly 0.8% below Tuesday’s close.
The move was much sharper than the opening suggested. The Dow began the session only 73 points lower at 52,674.21, while the S&P 500 opened down 0.14% at 7,418.16. The widening losses showed that investors became more defensive after the bell as geopolitical headlines, weakness in major stocks and concerns about interest rates hit the market at the same time.
The supplied 30-minute E-mini Dow futures chart captured that acceleration. Futures fell from around 52,800 to 52,138 through a series of large red candles, with little evidence of sustained buying during the decline. The contract is not the cash Dow Jones index, but it clearly reflects the same increase in selling pressure.
E-mini Dow Jones Futures Selloff Source: @KobeissiLetter
Procter & Gamble and Sherwin-Williams were among the Dow’s largest drags. At one stage, declines in the two stocks accounted for about 94 points of the index’s loss, while Goldman Sachs, Caterpillar and Boeing also traded lower. The weakness reversed part of Tuesday’s 537-point Dow rally.
S&P 500 returns to important technical support
The daily S&P 500 chart shows the index consolidating inside a tightening triangle after failing to extend its June rally. Price has returned to the rising lower boundary near 7,400, making that area the first level buyers need to defend. A recovery above 7,500 would ease immediate pressure, while a daily close below 7,400 would weaken the pattern and expose the lower part of the recent trading range.
S&P 500 Tests 7,400 Support Source: @CDamestoy
The Nasdaq’s decline added to an already difficult month for technology shares. The supplied chart showed the index down 4.47% over the previous month, with Wednesday’s move pushing it toward the lower end of that period. Semiconductor shares remained under pressure as investors questioned AI spending and reacted to another major selloff in Asian chip stocks. South Korea’s Kospi fell 6%, SK Hynix lost about 9.4% and Samsung Electronics dropped 4.8%.
The VIX rose to 19.23 shortly after 10 a.m. ET, up from Tuesday’s close of 18.21. That move showed investors paying more for short-term market protection, although the index remained below the closely watched 20 level.
VIX Climbs Toward 20 as Wall Street Selling Intensifies Renewed fighting in the Middle East added to the pressure by lifting energy prices and Treasury yields. Brent crude rose more than 6% to around $87 a barrel, while the 10-year Treasury yield moved near 4.62%. Higher oil prices can keep inflation elevated, while rising yields increase borrowing costs and reduce the relative appeal of stocks.
Investors now face two more major tests. The Federal Reserve will release its interest-rate decision at 2 p.m. ET, followed by a press conference at 2:30 p.m. Microsoft and Meta will report earnings after the closing bell, giving the market fresh evidence on whether heavy AI spending is producing enough growth.
