(Bloomberg) — A selloff in technology stocks accelerated in the last hour of trading in New York as concerns mount about the economic fallout from escalation of the Russian assault on Ukraine.
Tuesday saw broad declines in stocks but the selling accelerated in the late afternoon with the Nasdaq 100 Stock Index shedding nearly 100 points in a matter of minutes as Apple Inc. said it halted sales in Russia. The tech-heavy benchmark later pared some of the losses and closed at 14,005.99 for a decline of 1.6%.
The selloff capped a dour session that put a halt to a three-day advance for the Nasdaq 100 as some investors bet that the war is reducing the likelihood that the Federal Reserve will raise interest rates aggressively this month to combat inflation. But a spike in crude oil to as high as $106 on Tuesday and the prospect of higher consumer prices overshadowed that outlook.
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“Traders are trying to reduce their exposure to anything that has exposure to Russia and some are getting concerned that a prolonged economic slowdown is here,” said Edward Moya, senior market analyst with Oanda.
Apple Inc. ended the session 1.2% lower, while Facebook parent Meta Platforms Inc. fell 3.6% and Amazon.com Inc. lost 1.6%. Semiconductor stocks were also among the biggest decliners on Tuesday with Advanced Micro Devices Inc. sinking 7.7% and Marvell Technology Inc. down 5%. The Philadelphia semiconductor index dropped 3.6%, the most in nearly two weeks.
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