US stocks sink in biggest tech rout since 2022

The S&P 500 sank 2.7% in its worst day of the year, the Nasdaq 100 gave back 3.8% in its worst session since 2022, and the Russell 2000 fell 2.7%.

The rout in momentum stocks continues to be at the heart of the market’s struggles, though increasing fears about a US economic downturn are causing broader pain.

Tech, consumer discretionary, communication services, and financials were the worst-performing sectors. Financials erased all their year-to-date gains with Monday’s retreat. Utilities were the best-performing sector.

Tesla got slammed in its worst day since 2020 to make it the worst-performing stock in the S&P 500 so far this year. Palantir’s rapid unwind continued, with the stock down double digits.

Airlines continue to be rattled by the overhang from tariffs and fears of a slowing US consumer, with Delta Air Lines, United Airlines, Southwest Airlines, and American Airlines all sharply lower. Gaming stocks were in the same boat, with Nintendo, Sony, and Microsoft falling as levies threaten to push console costs upward.

Semi stocks took another shellacking, with Nvidia and Broadcom each off 5%.

It was also a rough day for crypto-adjacent stocks: Strategy’s plan to accumulate even more bitcoin was not well received given the plunge in digital assets, and Robinhood tumbled partially in sympathy with the crypto space, but also amid a settlement with Finra and S&P’s decision not to add it to the benchmark US stock index, as some had hoped.

(Sherwood Media is an independently operated subsidiary of Robinhood Markets Inc.)

Elsewhere, in gambling, DraftKings was routed as the downdraft in the stock market may weigh on Americans’ appetite for wagers.

Novo Nordisk tumbled after trials for its latest weight-loss shot disappointed.

Traders didn’t love Rocket Companies’ acquisition of real estate listing platform Redfin in an all-stock deal.

Some ports in a storm for investors included consumer staples and defense stocks like Conagra and Northrop Grumman.