The Nasdaq is down 1% as yield increases hit growth stocks

  • US yields consolidated to a 3-year high
  • Proportional sensitivity growth can lead to a fall in stocks
  • Indices below: Dow 0.15%, S&P 0.75%, Nasdaq 1.07%

April 11 (Reuters) – The Nasdaq fell more than 1% on Monday, leading Wall Street key indices down, with gains by Megacop stocks such as Microsoft and Apple weighing in on investors ahead of Tuesday’s inflation data.

Microsoft Corp Shares (MSFT.O)Apple Inc (AAPL.O) And Nvidia Corp. (NVDA.O) It fell between 1.9% and 4.1% as the 10-year treasury yield rose to 2.75%, hitting a new three-year high the previous day.

S&P 500 Technical Code (.SPLRCT) Fell 1.9%, the highest in 11 major S&P sectors, while the Philadelphia semiconductor index (.SOX) Decreased by 1%.

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Leading growth and technology stocks in a market lagging behind by low interest rates have been under pressure since late March by signals from the Federal Reserve that it will aggressively raise rates to control rising inflation. read more

Data on Tuesday expects U.S. consumer prices to rise to 8.5% for the new four-month period in March, year-on-year, after Ukraine hit 7.9% in February on rising energy costs.

“Now the problem with stock gaining momentum is that it’s not really clear where the inflation peak is,” said Eric Merlis, managing director of global markets for Citizens Financial Group.

“If we think that the central bank has a handle on inflation and that the war will no longer spread to Europe, you will find that growth stocks are rising more solidly. But we are not there.”

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Electric car maker Tesla Inc. (TSLA.O) China’s auto sales fell 2.1% after data showed a slump in March, with the country restricting controls to curb the spread of the Govt-19. read more

Nvidia fell 4.0% after downgrading Bird Chipmaker. Chip stocks (.SOX) This is one of the worst casualties of technology sales, down 22% so far this year, compared to a 13.5% decline on the Nasdaq. (.IXIC).

Investors will also focus on the big US banks, which will start the quarterly earnings season on Wednesday. They are expected to show a sharp decline in quarterly earnings a year earlier. read more

However, with the S&P 500 Banks Index, the possibility of higher rates boosted finances (.SPXBK) 1.7%.

S&P 500 value code (.IVX)Includes banking and energy stocks, more than its growth (.IGX) So far this year, the previous one was almost flat, while the growth index was down 13%.

10:13 a.m. ET, Dow Jones Industrial Average (.DJI) 52.55 points or 0.15% to 34,668.57, the S&P 500 (.SPX) 33.61 points or 0.75% lower at 4,454.67, the Nasdaq joint (.IXIC) 146.94 points, or 1.07%, to 13,564.06.

Twitter Inc (TWTR.N) It rose 2.8%, reversing all its pre-market losses after social media reported that Tesla boss Elon Musk had turned down its offer to join the company. read more

Media and Streaming Company Warner Bros. Discovery Inc. (WBD.O)Developed from a $ 43 billion merger of Discovery Inc. and AT&T Inc (TN), Up 3.6% on the first day of trading. AT&T shares rose 5.0%. read more

The NYSE has a 1.23-to-1 ratio and the Nasdaq has a 1.26-to-1 ratio, which is less of an issue than the advanced ones.

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The S&P Index recorded 31 new 52-week highs and eight new lows, while the Nasdaq recorded 24 new highs and 205 new lows.

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Report by Bansari Mayur Kamdar and Praveen Paramasivam in Bangalore; Editing by Shaunak Dasgupta

Our standards: Thomson Reuters Trust Principles.

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