Wednesday, October 27, 2021

Nasdaq ended sharply lower; Rising Treasury Yields Sink Big Tech

Wall Street ended sharply down on Monday (Oct. 4) as investors left Big Tech and other growth stocks in the face of rising Treasury yields, while concerns about a potential US government debt default also cautioned.

Apple, Microsoft, Amazon and Alphabet, the four most valuable companies in the US stock market, have each lost more than 2 percent.

Facebook, the fifth most valuable company, plunged nearly 5 percent after its app and its photo-sharing platform Instagram were downed for thousands of users, according to outage tracking website DownDetector.com.

US Treasury yields rose as investors worried about a lack of a debt ceiling setting in the US Congress and looked forward to the release this week of September employment data, which could pave the way for a tapering of Federal Reserve asset purchases. could.

President Joe Biden said he cannot guarantee that the government will not breach its $28.4 trillion debt limit unless Republicans join Democrats in voting to raise it, as the United States hits a historic milestone in just two weeks. Faces the risk of default.

Recent data suggests accelerating consumer spending, accelerating factory activity and rising inflation have raised bets that the Federal Reserve may begin to tighten its liberal monetary policy sooner than expected.

Wall Street’s main indexes were battered in September, largely hit by concerns including the fate of the infrastructure spending bill and the downturn of heavily indebted China Evergrande Group.

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The S&P 500 and Nasdaq closed at their lowest level since July.

The S&P 500 has now fallen nearly 5 percent from its record high on Sept. 2.

However, more than half of the S&P 500 stocks have declined 10 percent or more from their 52-week highs, including 71 stocks that are down more than 20 percent.

St. Louis Federal Reserve Bank President James Bullard warned investors that inflation could remain high for some time.

Parts of the market rallied, with both the S&P 500 energy and utility indices rallying.

Shares of Merck & Co rose 2.1 percent. Merck shares also rose on Friday on news that the company is developing the first oral antiviral drug for COVID-19.

Tesla Inc rose 0.8 percent after the electric vehicle maker reported record quarterly deliveries, which beat estimates.

The Dow Jones Industrial Average fell 0.94 percent to end at 34,002.92 points, while the S&P 500 fell 1.30 percent to 4,300.46. The Nasdaq Composite ended 2.14 percent lower at 14,255.49.

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This News Originally From – The Epoch Times

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