Major Averages Post Steep Losses, Nasdaq Underperforms

(RTTNews) - Stocks moved sharply lower over the course of the trading day on Wednesday, adding to the losses posted in the previous session. The pullback dragged the major averages below the levels seen before last week's Federal Reserve-inspired rally.

The sell-off on Wall Street was led by technology stocks, as reflected by the particularly steep loss posted by the tech-heavy Nasdaq.

Negative sentiment was generated by analyst comments raising concerns about weak demand for desktop computer processors and currency headwinds.

Semiconductor stocks subsequently turned in some of the tech sector's worst performances, dragging the Philadelphia Semiconductor Index down by 4.6 percent. With the drop, the index fell to its lowest closing level in well over a month.

Considerable weakness was also visible among biotechnology stocks, as reflected by the 4.4 percent loss posted by the NYSE Arca Biotechnology Index. The drop pulled the index down further off the record intraday high that it set last Friday.

Reflecting the weakness in the tech sector, software, internet, and networking stocks also saw significant weakness on the day.

Most of the other major sectors also came under pressure, with airline, telecom, and brokerage stocks showing notable moves to the downside.

However, energy stocks bucked the downtrend amid a significant increase by the price of crude oil. Crude for May delivery jumped $1.70 to $49.21 a barrel.

The major averages saw further downside going into the close, ending the session at their worst levels of the day. The Dow tumbled 292.60 points or 1.6 percent to 17,718.54, the Nasdaq plunged 118.21 points or 2.4 percent to 4,876.52 and the S&P 500 slumped 30.45 points or 1.5 percent to 2,061.05.