What Happened in the Stock Market?

The stock market experienced a sharp downturn, with the Nasdaq leading the losses and the Dow Jones falling nearly 800 points. The drop was driven by a combination of factors that weighed heavily on investor sentiment.

The technology sector—long responsible for sustaining much of the market’s recent gains—was the main force behind the decline. Tech companies saw broad sell-offs as investors grew concerned about stretched valuations, regulatory pressure, and more cautious expectations for future earnings. Because the Nasdaq is heavily weighted toward major tech companies, its fall was more pronounced, dragging the rest of the market down with it.

Another factor influencing the day’s decline was the market’s reaction to the end of the 43-day government shutdown. Although the government has officially reopened, investors are still assessing the economic impact of such a prolonged disruption and awaiting more clarity on the next steps in Washington. Volatility is common after major political events, and part of the sell-off reflects this period of adjustment.

Additionally, Disney shares fell after the company reported quarterly results that came in below expectations. Since Disney is a key component of the Dow Jones, its poor performance contributed directly to the index’s nearly 800-point drop.

Overall, the market faced a strong wave of risk aversion: investors moved out of stocks and into safer assets, resulting in broad losses across all major indexes. Sentiment now remains divided between caution and anticipation as Wall Street looks ahead to new economic indicators and policy decisions that could help stabilize conditions.