Stocks Sink on Growth Worries

U.S. stocks fell sharply on Wednesday, with Nasdaq suffering the deepest declines on worries that technology and biotech stocks have become overvalued, after government data signaled the U.S. economic expansion was slowing. At close, the Dow Jones Industrial Average lost 292.60 points, or 1.62%, to 17,718.54. The S&P 500 dropped 30.45 points, or 1.46%, to 2,061.05. The Nasdaq Composite was down 118.21 points, or 2.37%, to 4,876.52.

The Commerce Department data showed business investment spending plans fell for a sixth straight month in February, news that could lead economists to lower their first-quarter U.S. growth estimates and cause the Federal Reserve to delay interest rate hikes.

Oil settled up about 3 percent on Wednesday as a weak dollar. Benchmark Brent oil (LCOc1) settled up $1.37, or 2.5 percent, at $56.48 a barrel. It had gotten to $57.17 earlier.