Wall Street stocks fell sharply in volatile trading on December 21, with the Nasdaq confirming it is in a bear market, as concerns of slowing economic growth led investors to flee stocks in high-valuation sectors such as technology and communication services.
The major US stocks indexes accelerated declines in the last hour of trading after White House trade adviser Peter Navarro said the United States and China might not reach a trade deal at the close of a 90-day negotiating window unless Beijing can agree to a profound overhaul of its economic policies.
With December 21's losses, the Nasdaq has fallen nearly 22 percent from its August 29 high. The tech-heavy index dropped to its lowest level since August 2017.
The benchmark S&P 500 index, already on pace for its biggest percentage decline in December since the Great Depression, hit its lowest level since July 2017. It is now down 17.5 percent from its closing high on September 20. The Dow Industrials fell to its lowest level since October 2017 and has declined 16.3 percent from its October 3 closing high.
The mid-cap S&P 400 also confirmed it is in a bear market.
Navarro's comments added to already-mounting concerns over political uncertainty and the possibility of a slowdown in economic growth.
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