The U.S. stock market also goes down when tech stocks go down.

The technology sector put pressure on broader indexes during the trading session. The software, cloud computing, and semiconductor sectors saw the biggest drops. As the cost of borrowing money rose and consumer demand fell, investors became more worried that the fast growth that many online businesses had seen over the past two years would come to an end.

Several companies gave cautious advice about the future, saying that lower sales abroad, slower hiring, and higher operating costs could all affect this quarter's results. Traders had to think about their expensive tech stocks again because many of them are more sensitive to changes in interest rates.

ABecause of the widespread fear in the market, companies in the energy, industrial, and materials sectors all fell. Because inflation keeps affecting how much people spend, businesses that focus on consumers have had mixed success. Some economists say that people are becoming more picky about things they don't need, which could hurt businesses that need more money.

Investors chose safer options, which caused the yield on the 10-year Treasury note to go down a little. This showed that the bond market was becoming more cautious. Analysts say that the bond market is still unstable because traders are waiting for the Federal Reserve to make things clear. On the other hand, lower yields usually mean that growth will be slower in the future.

After the U.S. pulled back, markets all over the world fell, including those in Asia and Europe. People became even more wary as a result of the negative news regarding manufacturing abroad and growing geopolitical concerns. As the US dollar got a little stronger compared to other major currencies, the demand for historically stable assets also went up in currency markets.

As the earnings season goes on, investors will be very interested in hearing from big tech companies, banks, and stores. Experts believe that these numbers will help figure out if the recent drop is the start of a bigger correction or just a short-term change in the market. Also, they will help set expectations for the next quarter.

Investors Shift to Safer Assets as Volatility Rises.

As big tech companies continued to hurt the market as a whole, investors moved their money to safer, more traditional assets like Treasury bonds, utilities, and stocks of consumer staples. As demand went up, bond yields went down a little bit. This means that businesses that are growing quickly and are more sensitive to changes in interest rates are losing money.

Many institutional investors are moving their assets around for a short time while they wait for clearer signals from the Federal Reserve, according to financial experts. Traders are trying to guess whether the government will keep its current position on inflation or change it at the next Fed policy meeting, which is expected to happen in two weeks. As a result, the markets are under more stress.

The global markets were also careful. After the U.S. market fell, a few Asian and European exchanges also fell a little. Traders also bought more US dollars and other safe-haven currencies on the currency markets.

People who watch the market think that the next earnings cycle will be very important in figuring out if the recent losses are just a one-time thing or the start of a long-term trend. A lot of big IT, retail, and banking companies are expected to release their quarterly results later this week.