Market Overview

In the afternoon, the U.S. stock market experienced a significant sell-off, with both $Nasdaq Composite Index(.IXIC.US)$ and $S&P 500 Index(.SPX.US)$ dropping over 1% intraday. $Dow Jones Industrial Average(.DJI.US)$ ended up falling more than 530 points, closing down 1.3%, snapping a six-day winning streak and falling short of a new high.

The Russell 2000 index of small-cap stocks $Russell 2000 Index(.RUT.US)$ dropped nearly 2%, continuing its decline for the second consecutive day after being the most overbought since 2017.

On Thursday, the sell-off was broader, with only the energy sector in the S&P 500 rising, and only three Dow components posting gains. $CBOE Volatility S&P 500 Index(.VIX.US)$ jumped 10% to a two-and-a-half-month high.

Chip stocks saw intraday volatility, with the index turning negative twice. Despite positive earnings from $Taiwan Semiconductor(TSM.US)$ , which ended the session higher, $NVIDIA(NVDA.US)$ rose 2.6%, and $Intel(INTC.US)$ and $GlobalFoundries(GFS.US)$ also advanced. However, $Apple(AAPL.US)$ , $Amazon(AMZN.US)$ , and $Alphabet-A(GOOGL.US)$ fell around 2%. $Netflix(NFLX.US)$ 's Q3 revenue guidance disappointed, leading to a nearly 7% drop after hours before rebounding. Weight-loss drug leaders led declines in the healthcare sector, with $Eli Lilly and Co(LLY.US)$ plunging over 6%, marking its worst performance in at least three years.