Nasdaq closes down 5% in sharpest fall since 2020

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Wall Street closed sharply lower on Thursday in an abrupt reversal from the rally in the previous trading session, with the Nasdaq registering its biggest one-day decline since June 2020 and the largest U-turn since the start of the pandemic.

The Nasdaq Composite, comprised of many of the largest US technology companies, fell 5 per cent. The rally on Wednesday and the retreat on Thursday marked the sharpest gyration in the index since March 2020, with the Nasdaq oscillating more than 8 percentage points over two days of trading.

The blue-chip S&P 500 index also declined significantly on Thursday, sliding 3.5 per cent with more than 95 per cent of the stocks in the benchmark ending lower.

“Today is the first day I remember feeling just bad,” said Danny Kirsch, the head of options at Piper Sandler. “They have felt bad for a while but this is a more encompassing bad. There was nowhere to hide today.”

Every large sector was in the red, with…

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