The stock market posted its biggest drop since October Wednesday, led by declines in several Big Tech companies. The S&P 500 gave up 2.6%. The benchmark index had set a record high just two days earlier. The selling was broad, though technology giants including Facebook, Netflix, and Google’s parent company accounted for a big part of the pullback, the AP reports. The stock of beleaguered video game seller GameStop more than doubled as an army of small investors ganged up against hedge funds that made huge bets that the stock would fall. The Dow Jones Industrial Average skidded 633.87 points, or 2.05%, to 30,303.17. The S&P dived 98.85 points to 3.750.77, and the Nasdaq, which hit a record high on Monday, plunged 355.47 points, or 2.61%, to 13,270.60.
Stocks were down from the get-go as investors focused on the outlook for the economy and corporate profits amid a still-raging coronavirus pandemic. Boeing dropped 4.1% after the aircraft manufacturer posted its largest annual loss in the company's history, mostly due to the grounding of Boeing's 737-MAX fleet. The selling accelerated toward the end of the day, following the Federal Reserve's latest interest rate and economic policy statement. The selling comes amid uncertainty over whether the Biden administration will deliver on its proposed $1.9 trillion stimulus plan. Democrats' slim majority in the Senate has raised doubts about how soon more aid might arrive and whether such a package will end up being scaled back by spending-wary lawmakers.
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