NEW YORK (Reuters) – Wall Street’s key indices fell on Thursday, with the Nasdaq index posting its biggest daily percentage fall in four months, as technology-related stocks remained under pressure following a rise the U.S. bond yield.
The Dow and S&P 500 have experienced their biggest daily decline since late January.
Treasury 10-year benchmark yields hit a one-year high of 1.614%, prompting investors worried about wealthy valuations to lock in profits on some high-growth stocks. [US/]
Treasury note yields rose above S&P 500 allowance yields, offsetting strong stock market yield gains.
“Prices matter. At 1.5%, the yield compares to the S&P 500 allotment yield, ”said Peter Tuz, president of Chase Investment Advisor in Charlottesville, Virginia. “And with 10-year capital risk, you can get your principle back. Suddenly it’s competitive with stock, ”
Apple Inc, Amazon.com Inc, Microsoft Corp, Alphabet Inc, Facebook Inc and Netflix Inc fell between 1.2% to 3.6%.
Despite the widespread slippage in the market, GameStop Corp shares rose again, following a dramatic resurgence of so-called “stonks” online by retail investors. After doubling in the previous session, GameStop was nearly 90% higher at the height of the session but paid gains closed up 18.6%.
The Dow Jones industrial average closed 559.85 points lower, or 1.75%, to 31,402.01, the S&P 500 lost 96.09 points, or 2.45%, to 3,829.34 and the Nasdaq Composite fell 478.54 points, or 3.52%, to 13,119.43.
The S&P 500 technology sector fell 3.5%, as did communications services, which slipped 2.6%, among the segments that powered the market rally in 2020.
The S&P 500 growth index is virtually unchanged in February, significantly impacting the value index, which has gained more than 7% in hopes of reopening the economy following a pandemic.
“You’ve been in an equity market that has been at higher levels than this year and it’s expensive compared to historical norms,” Chase’s Tuz said. “We’ve been asked to make a sale.”
Meanwhile, data showed that fewer Americans filed new claims for unemployment benefits last week when COVID-19 infections fell, but the near-term outlook was not clear. after winter storms devastated this month.
Hope for increased U.S. stimulus and a faster pace of vaccinations at the start of the month has set the Dow Jones index for the best monthly gain since November.
“At the beginning of February, the driving force was the driving force but now that it is priced, there is nothing on the horizon for equity investors to be excited and there are concerns that over-limited, ”said Mike Zigmont, head of trade and research at Harvest Volatility Management.
Tesla Inc fell 8.1% after a media report that the electric car maker told employees it would temporarily suspend some production at their collection facility in California.
Moderna Inc jumped 2.5% after the drug dealer said it expected $ 18.4 billion in sales from the COVID-19 vaccine this year.
Cases that are declining higher than those of those on the NYSE with a 6.71-to-1 ratio; on Nasdaq, a 7.36-to-1 ratio favored rejection.
The S&P 500 raised 71 new 52-week highs and no new levels; the Nasdaq Composite recorded 202 new highs and 39 new lows.
U.S. exchanges volume was 15.84 billion shares, compared to an average of 15.61 billion for the full session over the last 20 trading days.
Reporting by Gertrude Chavez-Dreyfuss; Additional statement by Stephen Culp