Wall Street Turmoil: Nasdaq Composite Slips into Correction

The Nasdaq Composite fell into correction territory following weak U.S. jobs numbers, signaling economic slowdown concerns. Notable companies like Amazon and Intel suffered significant losses, exacerbating the decline. The Federal Reserve is expected to cut interest rates, while debates about recession and Big Tech valuations intensify.

The Nasdaq Composite has tumbled into correction territory, falling over 10% from its July peak, following weak U.S. jobs numbers that have heightened concerns over a slowing economy.

Hampered by downbeat forecasts from Amazon and Intel, investor sentiment took a hit, pushing the tech-heavy index into deeper losses. "This transition from growth perception to needing government intervention with lower interest rates for economic stabilization isn't unusual," said Tom Plumb, CEO and portfolio manager at Plumb Funds.

Amidst this downturn, the Federal Reserve is now expected to implement a more significant interest rate cut in September, as recession fears grow. "The question now is not if they will cut, but by how much," said Jay Woods, chief global strategist at Freedom Capital Markets. The S&P 500 and Dow also faced their biggest two-day drops in nearly two years, reflecting broader market anxiety.

(With inputs from agencies.)