The Nasdaq Composite was headed for a fifth straight decline on Monday, with a fall in the technology-laden index putting it in danger of falling into a correction for the first time since March of 2021.
In final investigation, Nasdaq Composite Comp,
fell 2.3%, or 347 points, to 14,587. The index needs to stay above 14,451.69 to avoid a correction from its record close of November 19. A correction is usually defined by market technicians as a decline of 10% from the most recent peak.
The Nasdaq Composite posted its biggest one-week drop since February last week, as bond yields continued to rise. puncture technical evaluation,
On Monday, the 10-year Treasury note TMUBMUSD10Y,
According to Dow Jones market data, the yield is up around 1.8%, adding to the highs not seen since January 2020. Yield moves inversely to price.
Yields are rising as investors expect tougher policy from the Federal Reserve and three interest rate hikes starting in March, possibly in 2022. Analysts at Goldman Sachs have predicted in a recent research note that there could be four hikes in interest rates this year.
Higher rates translate into higher power costs and could significantly weigh on rate-sensitive sectors of the market such as technology and growth-oriented assets?
The Nasdaq Composite last recorded a correction on March 8 and did not exit the correction until April 9.
Dow Jones Industrial Average DJIA,
Meanwhile, the S&P 500 index SPX was down 500 points, or 1.4%,
There was a decline of 1.8% in Monday’s trade.