Nasdaq tumbles to lowest close since late 2020

STORY: A steep stocks selloff sparked recession fears on Tuesday, with the Nasdaq closing at its lowest level since December 2020, as investors worried about slowing global growth and a more aggressive Federal Reserve.

The Dow fell nearly 2.4%, while the S&P 500 lost 2.8% and the Nasdaq ended down almost 4%.

Tim Pagliara is chairman and chief investment officer at CapWealth.

"The big issue that the markets are trying to get their arms around today is the 19.4 percent increase in housing prices, from February. That's the largest increase on record. [FLASH] When you see that type of inflation, these types of record-braking numbers, it makes everybody question how much is the Federal Reserve actually going to have to do to bring inflation under control."

Tesla fell 12%, contributing more than any other stock to the S&P 500 and Nasdaq's steep declines. Investors worried chief executive Elon Musk might sell some of his stake in the electric car maker to help pay for his $44 billion deal to buy Twitter, announced on Monday.

Other growth stocks got crushed.

Microsoft and Google-parent Alphabet both dropped more than three and a half percent ahead of their results after the closing bell. Alphabet fell another 6.5% in extended trading after its quarterly earnings report disappointed investors.

Apple, Wall Street's most valuable company, fell 3.7%, losing roughly $99 billion in one session. The iPhone maker posts results on Thursday.

Also set to report earnings on Thursday is Amazon, shares of which lost 4.6% on Tuesday.

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