Nasdaq reverses this year’s gain in a 3% rhythm, hitting its lowest level since January 29

Technology shares sold for a second day amid growing concerns that valuations for high-flying stocks are stretched as interest rates rise and the global economy moves closer to reopening.

The Nasdaq 100 fell 3 percent, mostly in four months, as the tech-heavy benchmark went into its longest losing streak since 2019.

Tesla Inc. fell. as much as 13 percent when investors continued to penalize stocks that led the rally from the depths of the pandemic a year ago. Cycling shares that were set to benefit from the end of loose locks performed better, limiting losses to the Dow Jones industrial average. A similar circulation was taking place in European stocks.

Their so-called worst-performing growth segments against peers are worth more than two decades as vaccine campaigns gather pace and bond yields climb. Betting has grown faster and higher rates have pushed the gap between 5- and 30-year yields to the highest level in more than six years.

Investors are increasingly concerned that broad price equity criteria have already made up for much of the planned global recovery by U.S. vaccines and stimuli. Another risk is that central banks could begin to reconsider emergency programs that have backed global markets.

“We may be reaching the point where it is a less robust movement, where people will start to worry about growth rates,” said Michael Shaoul, chief executive at Marketfield Asset. Management, in an interview on Bloomberg Television. “An equality index like the S&P 500 which is full of hugely popular equities may start to struggle. ”

Traders are waiting to hear from Federal Reserve Chairman Jerome Powell when he gives evidence to the Senate Banking Committee on Tuesday and to the House Financial Services panel the next day. It is expected to reduce the risk of inflation despite President Joe Biden’s $ 1.9 trillion coronavirus relief proposal.

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