The S&P and Nasdaq fell more than 1% on Monday as rising bond yields weighed in megacap growth stocks like Microsoft, Alphabet and Apple, and investors marginalized ahead of Tuesday's inflation data.
Shares of Microsoft Corp., Apple Inc and Alphabet Inc fell between 1.9% and 3.6%, as Treasury's 10-year average rose to 2.77% after touching the top three years earlier in the day.
The S&P 500 technical index fell 2.2%, while the Philadelphia semiconductor index fell 1.7%.
Leading market growth and technology stocks, backed by low interest rates, have been under pressure since late March with signals from the U.S. Federal Reserve that it will raise inflation sharply to control inflation.
"There are fears of growth and that is due to the decline in the second half of the year in terms of GDP growth, and rising interest rates at the end of the curve, making people concerned about short-term growth," said Jim Cahn, chief investment and business development officer.
Tuesday's data is expected to show US consumer prices jumping to 8.5% for a decade in March, year after year, after hitting 7.9% in February, as the Ukrainian conflict raises energy costs.
Manufacturer of electric vehicles Tesla Inc fell 3.6% after data showed that China's car sales dropped in March, hurting the country's efforts to boost the COVID-19 outbreak.
Nvidia Corp dropped 6.0% after Baird reduced its chip maker. Chip shares have been among the worst victims of tech sales, with the Philadelphia semiconductor index falling 22.2% so far this year compared to the 13.8% decline in the Nasdaq.
Investors will once again focus on major US banks, which begin the first quarter of the lead season on Wednesday. They are expected to show a significant decrease in quarterly earnings compared to last year.
The S&P 500 price index, which includes bank shares and strengths, performed better than its growth counterparts so far this year, when it was almost flat, while the growth index fell by 12.8%.
12:45 p.m. ET,
Dow Jones Industrial Average fell 235.40 points, or 0.68%, 34,485.72, the S&P 500 fell 56.89 points, or 1.27%, to 4,431.39, and the Nasdaq Composite decreased by 239, 3,4,7,17,17.
Twitter Inc. has increased 1.9% in gross trading, which reversed its market losses after a social media company said Tesla CEO Elon Musk had rejected his request to join the company's board.
Media and broadcasting company Warner Bros Discovery Inc., which is a joint venture between Discovery Inc and AT&T Inc assets, fell 2.4% on the first day of trading. AT&T shares gained 6.8%.
The downtrend has surpassed developers with a rating of 2.32-to-1 on the NYSE and a rating of 2.14-to-1 on the Nasdaq.
The S&P index recorded a new 52-week high and nine new highs, while Nasdaq recorded 26 new highs and 271 new highs.
Read More:
They just revealed what they believe are the ten best stocks for investors to buy right now…
Courtesy Grizler.com
