Friday, 14 December 2018 | 22:03 WIB

Wall Street Panics as Technology Stocks Slump

Illustration: moneycontrol

NEW YORK, NNC -- Stocks on Wall Street fell sharply at the close of Wednesday trading (Thursday morning GMT), as fears of a rate hike and selling of technology stocks shook the market.

The Dow Jones Industrial Average declined 831.83 points, or 3.15 percent, to end at 25,598.74 points. The S&P 500 index slumped 94.66 points, or 3.29 percent, to close at 2,785.68 points. The Nasdaq Composite Index ended falling 315.97 points, or 4.08 percent, to 7,422.05 points.

The technology sector experienced its worst day in seven years, pushing the Dow to its worst day in eight months.

Amazon shares fell 6.15 percent, while Netflix dived 8.38 percent. Facebook and Apple also fell more than four percent each.

The technology sector includes the largest companies based on market capitalization in the United States and those that have been the biggest contributors to the extension of the "bullish" market.

Fears of rising bond yields also put pressure on the stock market.

The 10-year US government bond yield was used as a reference, reaching 3.26 percent on Tuesday (10/9), the highest level since 2011.

On Wednesday (10/10), the yield of two-year government bonds reached 2.91 percent, the highest level in the past decade.

Investors have grappled with higher interest rates, following a series of key economic data and recent comments from key US central bank officials, as quoted by Antara.