The sell-off was led by the technology sector, with bellwether companies like Nvidia, Amazon, and Alphabet being the biggest drags on the market. This reflects investor concerns over stretched valuations in the sector.
A major factor contributing to the market's slide was the bond market. The 10-year Treasury yield climbed to 4.27%, making bonds a more attractive investment compared to stocks and putting pressure on equity prices. This also came amid political uncertainty regarding the Federal Reserve.
In a stark contrast to the stock market's performance, gold had a strong day, jumping 2% to hit a fresh all-time high. This highlights its role as a "safe-haven" asset for investors seeking stability during times of economic uncertainty.
Other notable events included a report showing that U.S. manufacturing contracted more sharply than expected and a federal court ruling that the administration overstepped its legal authority on tariffs, adding to market jitters. On the corporate front, Kraft Heinz announced it would split into two companies, while Constellation Brands tumbled after a disappointing forecast.