NEW YORK: The Nasdaq index fell more than 2% on Tuesday as investors sold off mega-cap growth stocks on valuation concerns, while keeping a close eye on Federal Reserve Chairman Jerome Powell’s testimony in Congress.

Shares of Netflix Inc, Alphabet Inc, Microsoft Corp, Amazon.com Inc and Apple Inc slipped between 1.5% and 3.5% in early trading.

“There’s definitely an assumption that inflation has crept and bled through and we are starting to see some impact of that assumption in the growth style of investing,” said Keith Buchanan, portfolio manager at GlobAlt in Atlanta.

The Nasdaq fell to its lowest in nearly a month moments after the opening bell, and is now set to post its biggest two-day loss since early September.

Seven of the 11 major S&P 500 sectors were trading in the red, with consumer discretionary, technology and communication services among the top three decliners.

Powell said the US economic recovery remains “uneven and far from complete” and it will be “some time” before the Fed considers changing policies it adopted to help the country back to full employment.

At 10:18 a.m. ET the Dow Jones Industrial Average was down 184.17 points, or 0.58%, at 31,337.52, the S&P 500 was down 40.54 points, or 1.05%, at 3,835.96, and the Nasdaq Composite was down 329.36 points, or 2.43%, at 13,203.69.