Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq ends sharply lower; rising Treasury yields sink Big Tech

EconomyOct 04, 2021 06:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Wall St. street sign is seen near the New York Stock Exchange (NYSE) in New York City, U.S., September 17, 2019. REUTERS/Brendan McDermid

By Noel Randewich

(Reuters) - Wall Street ended sharply lower on Monday as investors dumped Big Tech and other growth stocks in the face of rising Treasury yields, while concerns about a potential U.S. government debt default also fed caution.

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL), the U.S. stock market's four most valuable companies, each dropped more than 2%.

Facebook (NASDAQ:FB), the fifth most valuable company, slumped almost 5% after its app and its photo-sharing platform Instagram were down for thousands of users, according to outage tracking website Downdetector.com.

"For Big Tech, this is a short- to medium-term thing, part of a correction process. Rates were clearly too low, due in large part to central bank policies, and now as investors anticipate those policies getting clawed back, rates are moving closer to their real value," said Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors in Palm Beach, Florida.

U.S. Treasury yields rose as investors fretted about the lack of a debt ceiling fix in the U.S. Congress and looked ahead to the release this week of September employment data, which could pave the way for the tapering of Federal Reserve asset purchases.

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

Recent data showing increased consumer spending, accelerated factory activity and elevated inflation growth have fueled bets that the Federal Reserve could start tightening its accommodative monetary policy sooner than expected. [US/]

Wall Street's main indexes were battered in September, hit by worries including the fate of a massive infrastructure spending bill and the meltdown of heavily indebted China Evergrande Group.

The S&P 500 and Nasdaq's closes were their lowest since July.

The S&P 500 has now fallen about 5% from its record high close on Sept. 2.

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

Spooking investors further, St. Louis Federal Reserve Bank President James Bullard warned that inflation could remain elevated for some time.

Some pockets of the market enjoyed a bounce, with the S&P 500 energy and utilities indexes both rallying.

Shares of Merck & Co climbed 2.1%. Merck shares also rose on Friday on news the company was developing the first oral antiviral medication for COVID-19.

Tesla (NASDAQ:TSLA) Inc rose 0.8% after the electric vehicle maker reported record quarterly deliveries that beat estimates.

The Dow Jones Industrial Average fell 0.94% to end at 34,002.92 points, while the S&P 500 lost 1.30% to 4,300.46.

The Nasdaq Composite dropped 2.14% to 14,255.49.

U.S. trade negotiator Katherine Tai pledged to begin unwinding some tariffs imposed by former President Donald Trump on goods from China, while pressing Beijing in "frank" talks in coming days over its failure to keep promises made in the Trump trade deal and end harmful industrial policies.

Volume on U.S. exchanges was 11.1 billion shares, compared with the 10.8 billion average over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.92-to-1 ratio; on Nasdaq, a 2.62-to-1 ratio favored decliners.

The S&P 500 posted 21 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 70 new highs and 215 new lows.

Nasdaq ends sharply lower; rising Treasury yields sink Big Tech
 

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 (12)
Rodney Dangerfield
Rodney Dangerfield Oct 05, 2021 2:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'll tell you who I feel sorry for... the people with the all syllables for a name that comment on here they're cashing in their rice patties and camel dung all to ride the wave of the get rich quick.... when it's just a matter of time when it's back to rice patties and camel dung 🤣
Vinod Panthi
Vinod Panthi Oct 04, 2021 9:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so us30 big up🤔🤔🤔
James Pattison
James Pattison Oct 04, 2021 8:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Or the chinese are mobilizing to invade taiwan… and they are…
Sean Livingstone
Sean Livingstone Oct 04, 2021 8:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They have not ended the war, yeah, no peace treaty has been signed. You not so clever.
Hemant Thakker
Hemant Thakker Oct 04, 2021 6:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what Treasury yields... it's under 1.50....big deal
Mohd Izhar Muslim
Mohd Izhar Muslim Oct 04, 2021 6:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great News
Carrascal Eduardo
Edouard Oct 04, 2021 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When there is no good reason to justify a fact, downgrading the FAANG etc, it is better not to give any. Justifying today's drops with the headline of this writing makes no sense whatsoever
James Vandervest
James Vandervest Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Overvalued equities, that with the exception of Tesla and Apple don't produce anything real, just over hyped.
Ronald Warren
Ronald Warren Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What does Tesla produce. Earnings on a share of Tesla are $1.96 annually. At $800 a share, that's a P/E of over $400. Remember the Enron scandal?
Ronald Warren
Ronald Warren Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sorry, P/E of 400.
James Vandervest
James Vandervest Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ronald Warren   they produce electric cars
James Vandervest
James Vandervest Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In other words, they generate products that actually exist. Facebook, Google- all they do is exist in cyberspace, doing mind control. A large enough solar storm or EMF attacks would wipe them out of existence. I have the same complaint about Crypto, although I am speculating in the market this year to try and take advantage of this much hyped cycle.
Thomas Phantom
Thomas Phantom Oct 04, 2021 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol...james is a true expert..jayzus what a speciment
David Astro
David Astro Oct 04, 2021 1:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another way to look at it is, folks are profit taking now on the big tech stocks as they can see they are hyper over valued and will crash in the near future, as economy opens up.
Mitchel Pioneer
Mitchel Pioneer Oct 04, 2021 1:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So we have a convenient "rally" on absolutely nothing on Friday, and the laughingstock of the investing world "gained" exactly enough to eliminate the prior days loss.  How nice.  Today we have "concerned investors," and the DOW is being held to a loss under 400 points.  You sure don't see these shenanigans during "rallies."  Uninterrupted upside, with intervention to the downside, only in the US Ponzi Scheme.
cedrik marchand
cedrik marchand Oct 04, 2021 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
for 6 months lol
Mitchel Pioneer
Mitchel Pioneer Oct 04, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another 100 points flagrantly pushed out of the system.  Remarkable that you don't see "gains" relinquished.  Only in the biggest investment joke on the planet.
Alexander Fruman
Alexander Fruman Oct 04, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Тест
 
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