Nasdaq falls 3% as jump in bond yields hurts technology stocks
- Inflation concerns and a spike in interest rates led to technology stocks crumbling on Thursday.
Nasdaq 100fell 3% as the 10-year US Treasury yield hit a new cycle-high of 1.75%.
- The market continues to ignore the reassurances made by Fed Chairman Jerome Powell.
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A decline in US stocks on Thursday was led by the Nasdaq 100, which fell 3% following a surge in interest rates.
The 10-year US Treasury yield hit 1.75% on Thursday, representing a new cycle-high for the treasury note. Yields haven't been that high since January 2020, just two months before the COVID-19 pandemic led to widespread lockdowns across the globe.
Investors' inflation fears weren't quelled by Fed Chairman Jerome Powell's speech on Wednesday, as he committed to his resolve in maintaining ultra-low interest rates, as he sees current inflation concerns as transitory.
Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:
- S&P 500: 3,915.50, down 1.48%
- Dow Jones industrial average: 32,862.37, down 0.46% (153 points)
- Nasdaq composite: 13,116.17, down 3.02%
Weekly jobless claims moved higher on Thursday to 770,000, which was higher than economist estimates of 700,000 and also above last week's revised number of 725,000.
AMC Entertainment jumped nearly 5% after the company said 98% of its movie theater locations would be open by this Friday.
Bitcoin moved higher on Thursday and flirted with the $60,000 level as Fed Chairman Jerome Powell's commitment to continue supporting the economy with easy monetary policy fueled inflation concerns, which some investors say bitcoin is a hedge against.
Penny stock trading volume has soared 2,000% in the past year as a surge in retail investors has led to speculative investing in risky
The recent launch of the "BUZZ" social sentiment ETF, which was promoted by Barstool Sports' Dave Portnoy, has been a success as it passed the $500 million mark in assets under management.
Oil prices plunged on Thursday as investor fear over rising inventory builds, a strengthening US dollar, and lower demand prospects amid an uneven global vaccine rollout.
Gold jumped as much as 0.3%, to $1,732 per ounce.
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