Nasdaq index briefly crosses bear market threshold
NEW YORK (Reuters) - The Nasdaq composite index briefly slid on Tuesday to a level that typically signifies the onset of a bear market as shares of big-cap technology companies, including Apple Inc, tumbled on U.S. recession fears.
At the open, the Nasdaq crossed the threshold of what is considered a bear market when it fell more than 20 percent from the 52-week closing high of 2,859.12 it set on October 31, 2007.
To confirm the start of a bear cycle, which is a prolonged period in which investment prices fall, the index needs to end a session at least 20 percent below its closing peak.
Shares of technology companies have dominated in the latest market upheaval on concerns that they are among sectors likely to take the biggest hit from a U.S. economic downturn as spending by businesses and consumers falters.
Shares of Apple Inc were the top decliner on the Nasdaq, down 3.5 percent at $31.86, the stock's worst one-day slide since late February 2007. Apple is due to post quarterly results after the bell.
Last week, the Russell 2000 index, a gauge of small-cap stocks, entered bear market territory. It is down 21.3 percent from its record close set in July.
After hitting a low of 2,221.20 on Tuesday the Nasdaq index later trimmed losses and was at 2,297.12, down about 2 percent.
(Reporting by Ellis Mnyandu; Editing by Kenneth Barry)
