U.S. stock market sees worst single-day loss in 2-year period

July 24 (UPI) -- The U.S. stock market dipped Wednesday with the Nasdaq looking at its worst single-day loss since 2022.

The Dow Jones finished the day down by 504.22 points, or 1.3%, at 39,853.87, based on preliminary data and closed lower for the fourth time in the past five sessions.

Nasdaq Composit saw a 3.6% drop ending down down by 654.94 points, representing its own worst day since October 2022.

S&P 500, however, closed down by 128.61 points, or 2.3%, at 5,427.13 at its worst day on a percentage basis since December 2022.

Shares of Tesla dived 12% after the company reportedly missed its estimate earning figures, while Alphabet shares went down 5%

Meanwhile, markets anticipate PCE inflation will slow to 2.5% on an annual basis while the GDP is expected to show the economy grew 2.1% in the last quarter, according to Markets Insider .

Stock market moves on Wednesday were "very much a continuation of the rotational activity we were seeing last week, but it hasn't turned into an outright derisking yet," Michael Reinking, a senior market strategist for the New York Stock Exchange, told Market Watch .

"As volatility increases and fast trends begin to break, that does trigger a systematic reduction of risk and we could enter into that feedback loop," he said.