Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq ends lower for second day as Big Tech loses ground

EconomyNov 23, 2021 07:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly

By Ambar Warrick and Noel Randewich

(Reuters) - The Nasdaq ended lower for a second straight session on Tuesday, while the S&P 500 rose, as rising Treasury yields prompted investors to sell Tesla (NASDAQ:TSLA) and other Big Tech names and buy stocks with lower valuations.

The S&P 500 growth index dipped 0.3% and the value index climbed 0.8%.

Treasury yields extended gains as investors ramped up expectations of interest rate hikes next year after Jerome Powell was nominated by President Joe Biden as fed chair for a second term.

Tesla fell over 4% and Microsoft (NASDAQ:MSFT) lost 0.6%, with the two companies dragging on the Nasdaq more than any other stocks. Rising interest rates tend to make growth stocks less attractive to investors.

“The market is being whipsawed by a holiday shortened week, and it’s taking its cue from the recent uptick in interest rates, giving investors additional reasons to take profits in an overvalued market,” said Sam Stovall, chief investment strategist of CFRA Research in New York.

With banks benefiting from higher interest rates, the S&P 500 banks index jumped 2%, with Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) all rallying.

The S&P 500 energy index soared 3% and was the best-performing sector. Oil prices rose to a one-week high after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of some expectations.

An IHS Markit survey showed U.S. business activity slowed moderately in November amid labor shortages and raw material delays, but remained comfortably in expansion territory on strength in the manufacturing sector.

The Dow Jones Industrial Average rose 0.55% to end at 35,813.8 points, while the S&P 500 gained 0.17% to 4,690.7.

The Nasdaq Composite dropped 0.5% to 15,775.14.

After closing on Friday at its highest level ever, the Nasdaq has now lost about 1.8%. It remains up 22% year to date.

The CBOE volatility index briefly rose to a more than one-month high earlier on Tuesday.

The U.S. stock market will be closed on Thursday for the Thanksgiving holiday, and it finishes early on Friday.

Zoom Video Communications (NASDAQ:ZM) Inc slumped almost 15% after its third-quarter revenue growth rate slowed as demand for its video-conferencing tools eased from pandemic-fueled heights last year.

Best Buy Co Inc (NYSE:BBY) slid 12% after the electronics retailer forecast fourth-quarter comparable sales below expectations due to supply chain issues.

Chipmakers Micron Technology (NASDAQ:MU) and Western Digital Corp (NASDAQ:WDC) rose 1.85% and 6.3%, respectively, after Mizuho Bank upgraded the stocks to "buy" from "neutral".

Declining issues outnumbered advancing ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored decliners.

The S&P 500 posted 17 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 66 new highs and 497 new lows.

Volume on U.S. exchanges was 11.3 billion shares, compared with the 11.1 billion average for the full session over the last 20 trading days.

Nasdaq ends lower for second day as Big Tech loses ground
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Stan Smith
Stan Smith Nov 23, 2021 2:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rabobank: Whatever Powell Does From Here Is Going To End Very, Very Badly. Expect higher consumer prices, more social dissent and higher stock values...lol
Enrique Coleman
Enrique Coleman Nov 23, 2021 2:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So you think nasdaq will continue coming down, if what you saying is true?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email