Tech Stocks Plummet as Financial Yield Keep rising

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Stocks fell sharply Thursday as another day of flat rates rose strongly rejecting technical stocks.

By early evening, the

Dow Jones business average

fell 559.9 points, or 1.8%. The

S&P 500

fell 2.4%, and the

Nasdaq Composite

declined 3.5%.

10-year Treasury yields rose to 1.52% from a ruble of less than 1.4%. The yield is up from 1.1% just a few weeks ago. Rising rates will erode the value of future cash flows and growth companies – often in the tech arena – expect to see a large portion of the profits later. Tech stocks have been leading the market down for over a week now.

Weekly unclaimed earnings declined 111,000 to 730,000, a three-month low, the Labor Department said. A total of 845,000 applications were expected in the most recent week.

Asian stocks jumped, catching up with the rally on Wall Street as Federal Reserve officials made it clear they would maintain an easy monetary policy despite rising fears of inflation in markets.

The

Nikkei 225

rose 1.7% in Tokyo, the

Hang Seng

recover from Wednesday ‘s decline to rise 1.2%, and the

Kospi Composite

a 3.5% increase in Seoul.

Up 0.5% Wednesday, the Stoxx Europe 600 was down 0.4%.

Federal Reserve Vice Chairman Richard Clarida said the central bank will continue to buy bonds until “further progress” is made towards the highest goals of employment and price stability. Clarida said rates would be kept at near zero levels until the Fed reached “highest” earnings, inflation rose to 2%, and inflation hit the path to a higher than 2% for a period of time.

Clarida’s opinion confirmed the Congressional dovish evidence that Fed Chairman Jerome Powell had been delivering.

“With investors now confident again that the central bank will maintain a favorable flat rate environment – one of the key drivers of stock market convergence – risk appetite is growing again,” he said. Milan Cutkovic, market analyst at Axi.

Videogames Vendor

GameStop

(ticker: GME) and cinema operator

AMC Entertainment

(AMC) are back in sight after rising Wednesday, weeks after huge rallies for the two of them came out. Both companies like the Reddit message board WallStreetBets – which received so much activity that the site went down. A GameStop rally took place after he announced his chief financial officer was leaving. GameStop shares rose another 18.6% on Thursday. AMC was down 8.8%.

Nvidia

Shares (NVDA) fell 8.2% after the chip maker posted a strong quarter. The company earned $ 3.10 per share, surpassing the $ 2.81 forecast. Nvidia reported revenue of $ 5 billion, which exceeded expectations of $ 4.8 billion.

Moderna

Sections (MRNA) rose 2.5% as the company moves forward with its process to build a vaccine that will provide adequate immunization against new strains of the virus.

ViacomCBS

Shares (VIAC) fell 4.7% after the company beat earnings estimates, posting an EPS of $ 1.04, better than the expected $ 1.02. The media company’s revenue yield missed the mark, coming in at $ 6.87 billion, below the $ 6.89 billion forecast.

Expedia

Shares (EXPE) fell 3.4% after Argus updated the stock to Buy from Hold.

Loews

Shares (L) fell 3.3% after Gordon Haskett upgraded the shares to Buy from Accumulate.

Anheuser-Busch InBev

Shares (BUD) fell 7.9% as the brewer reported stronger-than-expected sales and volumes for the fourth quarter but also said this year’s margins would withstand pressure from bad channel and packaging mix, along with commercial foreign exchange and commodity heads.

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