US Stock Market: DJIA, S&P500, Nasdaq and Russell ended in red on Thursday

Thursday’s stock market gains were wiped out by a late-afternoon sell-off, sending major indices deeper into negative territory for the year.

The dramatic reversal in the broader market was once again driven by technology companies, which had been the source of tumultuous trading all week. As investors prepare for increased interest rates, shares in costly technology companies and other expensive growth equities become less appealing.

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The S&P 500 dropped 50.03 points, or 1.1%, to 4,482.73, with roughly 85% of the index’s companies plunging. The benchmark index ended the day at a three-month low after rising as much as 1.5% earlier in the day. It is currently down 6% for the year.

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After climbing as high as 2.1%, the Nasdaq sank 186.23 points, or 1.3%, to 14,154.02. The index’s losses in recent months have placed it in what Wall Street calls a market correction, or 10% below its top, as of Wednesday. Apple lost 1%, while chipmaker Nvidia slid 3.7%.

The Dow Jones Industrial Average slid 313.26 points, or 0.9%, to 34,715.39.

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American Airlines lost 3.2% and United Airlines fell 3.4% after alerting investors that the recent spike in COVID-19 cases will harm their profitability in early 2022. Both airlines posted fourth-quarter losses, however, they were lower than experts projected.

Alcoa gained 2.7% after announcing solid fourth-quarter financial performance as commodity prices increased. Travelers Insurance climbed 3.2% after easily outperforming analysts’ financial estimates.

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Peloton shares have lost around a quarter of their value after CNBC reported that the business is temporarily pausing manufacture of its treadmills and exercise bikes. According to the business news network, it obtained internal Peloton papers that showed demand for the company’s linked fitness equipment had dropped dramatically due to pricing and competition.

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Peloton shares rose early in the pandemic as people exercised at home, but have dropped 85% since reaching an all-time high of $167.42 on Jan. 13, 2021. On Thursday, the stock dropped 23.9% to $24.22.

Bond yields increased. The 10-year Treasury yield rose from 1.82% to 1.83%.