Nasdaq Tumbles More Than 3% Why Are Stocks Down Today

Why are stocks down today? Wall Street’s major market averages handed back earlier gains on Tuesday as the tech space plunged, leaving the Nasdaq Composite down more than 3%. The Dow fell 1% and the S&P 500 slid 2.2%, a broad pullback that hit the market’s biggest benchmarks in one session.

Nasdaq Leads Tuesday’s Selloff

The Nasdaq Composite’s drop of more than 3% was the sharpest move among the three major U.S. indexes cited in the session. That placed the heaviest pressure on technology shares, which drove the day’s decline after earlier gains were erased.

The S&P 500 fell 2.2%, showing the selloff was not limited to one corner of the market. When the broader benchmark loses more than 2% while the Nasdaq drops harder, the weakness is no longer confined to a single trading theme.

Dow Loses 1% With Gains Reversed

The Dow was down 1% Tuesday after trading higher earlier in the day. That reversal signals how quickly sentiment shifted as the session progressed, with the major averages moving from gains to losses instead of building on the opening tone.

The key friction point was the split between the day’s earlier advance and the late-session setback. Traders who entered the afternoon with gains saw those gains disappear as the tech space weakened and pulled the major benchmarks lower.

What Tuesday’s Slide Changed

For investors tracking the major U.S. indexes, Tuesday changed the tone from a gain to a tech-led decline. The Nasdaq Composite’s move more than 3% lower put the sharpest pressure on growth-heavy portfolios, while the S&P 500 and Dow also finished in the red.

If the tech space keeps driving the direction of the market, the most immediate read from Tuesday is that the major averages can still reverse quickly when that group loses momentum. The session ended with all three benchmarks lower and the earlier advance gone.