Nasdaq drops 2% as stocks hit 4-week low.

The Nasdaq Composite Index dropped 2% on Monday, hitting a four-week low as investors grew increasingly concerned about the ongoing surge in COVID-19 cases and the potential impact on the global economy.

The tech-heavy index fell 274.28 points to close at 13,401.86, while the S&P 500 and Dow Jones Industrial Average also saw declines of 1.6% and 1.3%, respectively.

The sell-off was driven by a number of factors, including rising inflation fears, concerns about the pace of the economic recovery, and uncertainty surrounding the Federal Reserve’s monetary policy.

Investors are also worried about the impact of the Delta variant of COVID-19, which has led to a surge in cases in many parts of the world, including the United States. The highly contagious variant has raised concerns about the potential for renewed lockdowns and other restrictions, which could weigh on economic growth.

The sell-off was particularly pronounced in the technology sector, which has been one of the strongest performers in the market over the past year. Shares of major tech companies like Apple, Amazon, and Microsoft all saw significant declines, with Apple falling more than 2% and Amazon dropping nearly 3%.

The decline in tech stocks was also driven by concerns about rising inflation, which could lead to higher interest rates and lower valuations for growth-oriented companies.

Despite the recent sell-off, many analysts remain optimistic about the long-term prospects for the stock market. While there are certainly risks and uncertainties in the near term, many believe that the underlying fundamentals of the economy and corporate earnings remain strong.

Investors will be closely watching the upcoming earnings season, which kicks off this week with reports from major banks like JPMorgan Chase and Goldman Sachs. The results will provide important insights into the health of the economy and the outlook for corporate profits in the coming months.

In the meantime, investors should remain cautious and focus on building a diversified portfolio that can weather the ups and downs of the market. By staying disciplined and sticking to a long-term investment strategy, investors can position themselves for success in any market environment.