Nasdaq leads US stocks lower as Treasury yields jump to 3-month high
Nasdaq Compositelost the most ground Monday among Wall Street's major benchmarks.
stocksbore the brunt of the 10-year Treasury yield rising to a three-month high of 1.5%.
- Investors pushed into bonds as focus turns again to a possible Fed rate hike in late 2022.
US stocks closed mostly in red Monday, with tech names weighed down by a climb in Treasury yields as investors refocused on expectations for the Federal Reserve to begin tapering asset purchases in the coming quarter and raising interest rates next year.
The S&P 500 lost ground and the Nasdaq Composite, the index featuring some of the largest tech companies in the world, fell for a second straight session. The pricey group of tech stocks was hurt as the 10-year Treasury yield surpassed 1.5%, the highest level since late June.
Here's where US indexes stood at 4:00 p.m. on Tuesday:
- S&P 500: 4,443.14, down 0.28%
- Dow Jones Industrial Average: 34,869.37, up 0.21% (71.37 points)
- Nasdaq Composite: 14,969.97, down 0.52%
"US tech dominance has helped drive major outperformance for the Nasdaq over the course of this pandemic, yet we are starting to see that unravel as the Fed moves towards a new tightening cycle," said Joshua Mahony, senior market analyst at IG, in a note Monday. "Concerns over the possibility that tech stocks have been pumped up by easy money brings a potential shift towards pro-cyclical laggard which often rise as yields improve."
Gold was up marginally at $1,750.68 per ounce.
Bitcoin fell 0.4% to $43,039.51.
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