Nasdaq ends sharply down; rising Treasury yields sink Big Tech

- Advertisement -

- Advertisement -

  • Merck up on COVID-19 pill, Tesla picked up by record delivery
  • Biden says can’t guarantee government won’t breach debt limit
  • Indexes: Dow -0.94%, S&P 500 -1.30%, Nasdaq -2.14%
- Advertisement -

Oct 4 (Businesshala) – Wall Street fell sharply lower on Monday as investors shunned Big Tech and other growth stocks due to rising Treasury yields, while concerns about a potential US government debt default also prompted caution.

Apple (AAPL.O), Microsoft (MSFT.O), Amazon (AMZN.O) and Alphabet (GOOGL.O), the four most valuable companies on the US stock market, have each lost more than 2%.

Facebook (FB.O), the fifth most valuable company, fell nearly 5% after its app and its photo-sharing platform Instagram were downed for thousands of users, according to outage tracking website

“For Big Tech, it is a matter of short to medium term, part of a reform process. Rates were clearly too low due in large part to the policies of the central bank, and now as investors get back to those policies. We anticipate that rates are moving closer to their true value,” said Jack Ablin, chief investment officer at Cressett Wealth Advisors in Palm Beach, Florida.

US Treasury yields rose as investors worried about a lack of a debt ceiling setting in the US Congress and looked forward to the release this week of September employment data, paving the way for a tapering of Federal Reserve asset purchases. could.

President Joe Biden said he could not guarantee that the government would not breach its $28.4 trillion debt limit unless Republicans joined Democrats in voting to raise it, as the United States would need to be in just two weeks. Face the risk of a historical default.

Recent data suggests accelerating consumer spending, accelerating factory activity and rising inflation have raised bets that the Federal Reserve may begin to tighten its liberal monetary policy sooner than expected.

Wall Street’s main indices were battered in September, largely hit by concerns including the fate of the infrastructure spending bill and the downturn of heavily indebted China Evergrande Group (3333.HK).

The S&P 500 and Nasdaq closed at their lowest level since July.

The S&P 500 is now down nearly 5% from its record high on Sept. 2.

However, more than half of the S&P 500 stocks have declined 10% or more from their 52-week highs, with 71 stocks down more than 20%.

Businesshala Graphics

St. Louis Federal Reserve Bank President James Bullard warned investors that inflation could remain high for some time.

Markets edged higher, with both the S&P 500 Energy (.SPNY) and the Utility Index (.SPLRCU) rising.

Shares of Merck & Company (MRK.N) rose 2.1%. Merck shares also rose on Friday on news that the company is developing the first oral antiviral drug for COVID-19.

Tesla Inc (TSLA.O) rose 0.8% after the electric vehicle maker reported record quarterly deliveries that beat estimates.

The Dow Jones Industrial Average (.DJI) fell 0.94% to end at 34,002.92 points, while the S&P 500 (.SPX) ended 1.30% lower at 4,300.46.

The Nasdaq Composite (.IXIC) was down 2.14% at 14,255.49.

US trade negotiator Katherine Tai has promised to begin unwinding some of the tariffs imposed by former President Donald Trump on goods from China, while coming to terms with his failure to keep promises made in the Trump trade deal and end harmful industrial policies. In days, Beijing has been pressured into “clear” talks. .

Volume on US exchanges stood at 11.1 billion shares, compared to an average of 10.8 billion over the past 20 trading days.

reducing issues leading to a 1.92-to-1 ratio on the NYSE; On the Nasdaq, a 2.62-to-1 ratio favored the decline.

The S&P 500 posted 21 new 52-week highs and 7 new lows; The Nasdaq Composite posted 70 new highs and 215 new lows.

Reporting by Noel Randwich in Oakland, Calif.; Additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Maju Samuel and David Gregorio


- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox