The big tech deterioration raises a major red flag for the market

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Stock Markets,S&P 500 Index,NASDAQ Composite

As tech goes, so goes the broader stock market. That’s not a good thing right now.

As tech goes, so goes the broader stock market. That's not a good thing right now. The S & P 500 and Nasdaq Composite tumbled 2.1% and 3.3%, respectively, on Tuesday. That marked each benchmark's' worst day since the Aug. 5 sell-off. The losses were led by declines in tech. Nvidia dropped more than 9%, its biggest one-day decline since mid-April. ON Semiconductor dropped 8.8% and Advanced Micro Devices lost 7.8%. Apple retreated 2.7%, while Alphabet sank 3.7%.

" The latest Wall Street pullback also comes amid renewed fear over the state of the U.S. economy. Two data sets released Tuesday showed contraction in U.S. manufacturing . To be sure, Jonathan Krinsky of BTIG noted the relative outperformance in certain sectors doesn't point to a recession. "The confusing part is that it has been replaced by some low-vol sectors , but also areas like financials and industrials. Financials an 18-month relative high .

 

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