The Nasdaq Composite fell 1.3% on Wednesday as selling pressure in the technology sector weighed heavily on the index.
The decline came as US equity markets closed with no clear directional bias, highlighting a divergence in performance between growth and value stocks.
While tech names struggled, the Dow Jones Industrial Average managed to post gains, suggesting investors are rotating away from high-multiple tech holdings toward more defensive or traditional industrial plays.
The pullback in the Nasdaq follows a period where US equity markets had lost momentum earlier in the week.
On Monday, both the Nasdaq Composite and the S&P 500 approached key technical resistance levels, struggling to extend recent gains.
The inability to break through these technical ceilings, combined with lingering geopolitical uncertainty, has capped upside potential for the broader market.