U.S. stocks fell sharply Thursday, wiping out Wednesday’s gains. The S&P 500 dropped 4.4% to 7,353.73, the Nasdaq Composite fell 5.5% to 24,315, and the Dow Jones Industrial Average lost 1,833.06 points, or 3.4%, to close at 51,523.06.
The Nasdaq recorded the steepest percentage drop of the three major indexes as stocks linked to the buildout of AI data centers came under pressure. The losses also reached smaller companies. The Russell 2000 fell about 4.4%.
How much of Wednesday’s rally disappeared?
The Dow closed at 53,356.12 on Wednesday, up from 51,786.72 on Tuesday, according to daily closing data published by the Federal Reserve Bank of St. Louis. Thursday’s loss took it 263.66 points below Tuesday’s close. The S&P 500 and Nasdaq Composite also finished below their Tuesday closes.
The percentage moves make it easier to compare the three indexes. The Dow lost more points than the Nasdaq, but the Nasdaq fell more in percentage terms because it started from a lower level. The declines also look different over a longer period. Through Thursday, the S&P 500 was still up 7.4% for the year, the Dow was up 7.2%, and the Nasdaq Composite was up 4.6%. Those figures describe changes in index levels, before any dividends or fund expenses.
Measured from Tuesday’s close, the Dow was down about 0.5% over the two sessions. That is the relevant comparison for someone who last checked the index before Wednesday’s rally. Thursday’s 3.4% decline measures only the move from Wednesday’s close.
Why your account can show a different number
The three indexes represent different sets of stocks. The Dow follows 30 companies and gives more weight to those with higher share prices. The S&P 500 covers large U.S. companies and gives larger companies more influence. The Nasdaq Composite covers stocks listed on the Nasdaq exchange and has substantial exposure to technology companies.
A fund that tracks the S&P 500 is designed to follow that benchmark, subject to factors such as expenses and tracking differences, as the SEC’s investor education site explains. A retirement account can hold several funds, including bonds or international stocks, so its total balance can move differently from any one U.S. index. The fund’s name or fact sheet identifies its benchmark. In an account that holds more than one fund, the change in each holding and its share of the balance determine how much it contributes to the day’s overall move.
