4,185
 

Sep 28 - Dow falls 500 points, Nasdaq loses 2.7% as yield spike hits tech stocks



ADVERTISEMENT
 
topics gone triple plat - Number 1 spot 3X PLAT
most viewed right now
+33  104
298 replies  @news

most viewed right now
+22  90
80 replies  @wild'ish



section  x5   |  0 bx goons and 5 bystanders Share this on Twitter       Share this on Facebook

section news
  
 3 weeks ago '11        #1
349 page views
3 comments


Sin  topics gone triple plat - Number 1 spot x40
avatar
Props total: 163604 163 K  Slaps total: 22865 22 K
Sep 28 - Dow falls 500 points, Nasdaq loses 2.7% as yield spike hits tech stocks
 

 

U.S. stocks fell on Tuesday, with tech names dragging down the Nasdaq and the broader markets as Treasury yields traded near three-month highs.

The Nasdaq Composite was down 2.7%, and the S&P 500 shed nearly 2%. The Dow Jones Industrial Average lost 513 points, or about 1.5%.

The 10-year Treasury yield continued its speedy climb on Tuesday, rising as high as 1.558% as investors bet the Fed would carry through on its promise to curb its emergency bond-buying stimulus as inflation jumps. The 10-year yield has reversed dramatically to the highest levels since June since the Fed signaled last week it would taper its $120 billion in monthly bond purchases “soon.”

The 10-year rate was as low as 1.29% at one point last week and was as low as 1.13% as recently as August. The 30-year Treasury yield has also been on the move, topping 2%.

“The market’s been steadily coming around to the reality that yields were awfully low relative to the fundamentals. Now the Fed is shifting, and everybody’s shifting their positions, all at once, as we tend to do,” said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research.

Tech shares were dropping in morning trading as a rapid rise in rates makes their future cash flows less valuable, and in turn makes the popular stocks appear overvalued. Higher rates also hinder tech companies’ ability to fund their growth and buy back stock.

Facebook and Alphabet shares lost more than 3%, while Amazon dropped 2.9%. Large chip stocks struggled, with Nvidia sliding 4%.

The drop in tech dragged down sentiment on the markets though there were pockets of strength. Energy stocks like Exxon rose in early trading as WTI crude topped $76 a barrel. Shares of Ford rose 1.3% after the company announced plans to build new production facilities in the U.S.

“I’m having actually a little deja vu to last fall, if you remember last September, when we saw interest rates move a little bit and the reaction in tech,” said Jeff Kilburg, the chief investment officer at Sanctuary Wealth. “And the selling pressure in tech really was a catalyst last fall for the reflation and rotation trade, and again here we are.”

Also weighing on sentiment was a budget showdown in Washington. Senate Republicans blocked a House-passed bill Monday that would have funded the government into December and suspended the debt ceiling until December of 2022. Congress must approve government funding by Friday to avoid a shutdown, and Treasury Secretary Janet Yellen warned Congress in a letter on Tuesday that lawmakers need to raise the debt limit by Oct. 18 to avoid a government default.

Federal Reserve Chair Jerome Powell told the Senate Banking Committee on Tuesday that inflation could persist longer-than-expected.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.”

The central bank indicated last week that it was ready to begin “tapering” — the process of slowly pulling back the stimulus they’ve provided during the pandemic. The Fed left rates unchanged but penciled in possibly one interest rate hike in 2022, followed by three apiece in the 2023 and 2024.

Thursday marks the final day of trading of September and the third quarter. Through Monday, the Dow was down 1.4% for the month, and the S&P 500 was off by 1.8%. The Nasdaq Composite has lost 1.9% in September.

The Covid-19 delta variant, the Federal Reserve’s tapering plan and inflation have worried investors. However, the Dow is still up nearly 14% year to date despite the weakness in September. The S&P 500 and Nasdaq are also sharply higher.

visit this link https://www.cnbc.com/2021 .. lose-news.html



image


Last edited by Sin; 09-28-2021 at 10:12 AM..
+3   



best
worst
3 comments
 

 3 weeks ago '17        #2
Ymmot  topics gone triple plat - Number 1 spot x5
Props total: 93656 93 K  Slaps total: 25868 25 K
Huge buying opportunity for anyone reading this.
+8   

 3 weeks ago '11        #3
Blinx 182 
Props total: 9351 9 K  Slaps total: 2818 2 K
 Ymmot said
Huge buying opportunity for anyone reading this.
You better tell ‘em!
+2   

 3 weeks ago '18        #4
BrooklynDamien  topics gone triple plat - Number 1 spot x2
Props total: 44565 44 K  Slaps total: 3779 3 K
Spy got a bit more to fall if you like buying dips. I think we see it hit 400.



Sign me up
 
 

yesterday...


most viewed right now
online now  27
Video inside Behind The Scenes Footage Shows Eddie Winslow Kissing & Grinding On Sid..
238 comments
22 hours ago
@hiphop
most viewed right now
online now  23
Image(s) inside Drop what you copping for the cold weather
33 comments
1 day ago
@gear
most viewed right now
-50online now  22
0nlyfans Model Breaks Down How They Can Still Be Wifey Material Even With Over..
49 comments
2 days ago
@wild'ish
most viewed right now
+33online now  9
[Health] Magic 🍄 Chocolate 🤯
75 comments
2 days ago
@misc
back to top
register register Follow BX @ Twitter search BX privacyprivacy