Major U.S. equity indices closed sharply lower Wednesday as risk-off sentiment gripped markets, with the S&P 500 falling 1.40% to 6,641, the Dow dropping 1.68% to 46,328, and the Nasdaq declining 1.39% to 22,130. The Russell 2000 small-cap index underperformed with a 1.61% decline to 2,470, reflecting broad-based selling pressure across market capitalizations.
The VIX fear gauge spiked to 29.0, indicating heightened investor anxiety as traders grappled with persistent inflation concerns and geopolitical tensions.
Despite the overall market weakness, Cloudflare emerged as a standout performer, surging 6.60% to $225.48 following strong quarterly results and optimistic guidance for its cloud security platform. Conversely, Mastercard weighed on the financial sector with a 3.57% decline to $488.47 after disappointing cross-border payment volume data raised concerns about global economic activity.
The broad-based selloff reflects growing uncertainty about the Federal Reserve's monetary policy path and its impact on economic growth, leaving investors cautious ahead of key economic data releases.