Stock Market Plunges: Dow Closes Lower by Nearly 400 Points, Nasdaq Drops 1.9%

The stock market experienced a significant decline as the Dow Jones Industrial Average fell by 398.70 points, or 0.84%, closing at 46,912.30. The S&P 500 also traded down by 1.12%, settling at 6,720.32, while the Nasdaq Composite tumbled 1.9% to end at 23,053.99.

Names in the artificial intelligence trade came under pressure amid worries around eye-watering valuations, leading to a broad pivot out of tech stocks. The tech-heavy Nasdaq Composite led the decline, sliding nearly 2%. The S&P 500 lost 1.1%, and the Dow Jones Industrial Average sank around 0.8%, or nearly 400 points.

Investor confidence was rattled by valuation concerns and weak job data, causing US stocks to drop sharply. The Nasdaq Composite fell 1.6%, marking its worst week since April. The S&P 500 slipped 0.9%, while the Dow Jones Industrial Average tumbled 400 points at its lowest.

Overall, the stock market plunge highlighted the ongoing volatility and uncertainties in the market, with tech giants like Tesla, Datadog, Snapchat, and Duolingo experiencing significant post-earnings moves. With worries about valuations intensifying, investors are closely watching the market for any signs of recovery or further decline.