NEW YORK — The wild ride on Wall Street just got crazier.
The Dow dropped about 345 points, or 1.4 percent, on Tuesday, completely reversing a 244-point gain from early in the day. The selloff followed Monday’s 670-point spike.
The Nasdaq plunged nearly 3 percent — wiping out nearly all of Monday’s huge gains for the tech sector. The Nasdaq is now up just 1.5 percent on the year.
Facebook, Twitter, Tesla and Nvidia all fell sharply. Netflix tumbled 6 percent, its biggest decline in two years.
“We started bleeding when large tech got hit hard,” said Art Hogan, chief market strategist at B. Riley B.
Investors poured money into bonds Tuesday. The 10-year Treasury yield slipped to 2.77 percent, the lowest since early February.
But the sinking yields also narrowed the closely-watched gap between short and long-term rates, known as the yield curve.
“That has persistently been a signal of an economic slowdown,” Hogan said. “I don’t think that’s the case here.”
A “flattening” yield curve also makes it harder for banks to make money on the difference between what they lend out and pay interest on.
Bank of America, Wells Fargo and PNC fell more than 2 percent apiece.AlertMe