Tech Stocks Tumble Amid Market Jitters and Policy Shifts

Wall Street shares continued to decline on Wednesday, fueled by a significant tech selloff that extended into its second day. The S&P 500 fell 0.2%, and the Nasdaq Composite, dominated by technology companies, slid 0.7%, carrying forward the steep losses of Tuesday. Despite these losses, both indices made partial recoveries from earlier deeper declines.

The Dow Jones Industrial Average managed a slight gain, inching up by 0.04%. Experts cited a mix of elements contributing to tech stocks' underperformance, ranging from apprehensions about overly high valuations to a trend of profit-taking by investors and increasing risk aversion. Comments by Seth Hickle of Mindset Wealth Management suggest that after robust earnings, a market pullback was foreseeable.

In the political arena, President Donald Trump's growing influence over tech companies has captured investor attention. Reports indicate U.S. Commerce Secretary Howard Lutnick is exploring options for the government to acquire stakes in key chip companies like Intel, as Washington continues to negotiate unique revenue-sharing arrangements with firms such as Nvidia and AMD.

(With inputs from agencies.)