Nasdaq tumbles to lowest close since late 2020

APD NEWS

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Wall Street ended sharply lower on Tuesday, with the Nasdaq closing at its lowest since December 2020 as investors worried about slowing global growth and a more aggressive Federal Reserve.

Tesla slumped by 12 percent after investors worried that chief executive Elon Musk might sell some of his stake in the electric car maker to help pay for his $44 billion deal to buy Twitter, announced on Monday.

Tesla contributed more than any other stock to the S&P 500 and Nasdaq's steep declines.

The Nasdaq Composite dropped by 3.95 percent to 12,490.74.

It was the steepest one-day drop for the Nasdaq since September 2020. The tech-heavy index has now fallen by 22 percent from its record high close last November.

Previously prized growth stocks have been hammered in recent weeks as investors fret about the impact of higher interest rates on their future earnings.

The Dow Jones Industrial Average fell by 2.38 percent to end at 33,240.18 points, while the S&P 500 lost 2.81 percent to 4,175.2.

About a third of the S&P 500 companies are set to report results this week.

Apple, Wall Street's most valuable company, fell by 3.7 percent in Tuesday's session ahead of its report on Thursday.

General Electric Co. tumbled by more than 10 percent after forecasting full-year earnings at the low end of its previous estimate.

Meanwhile, data showed U.S. consumer confidence edged lower in April, though households planned to buy automobiles and many appliances, which should help underpin consumer spending in the second quarter.

(CGTN)