Tuesday, 28 September 2021 -
Wall Street saw the red arrow marking its Tuesday business, with all major indexes ending lower as a spike in Treasury yields dragged tech stocks down.
S&P: down 2%
Dow Jones Industrial Average: down 2% or 596 points
Nasdaq: down 2.8%
Investors’ concern about the prospect of the FED raising interest rates sooner that generally expected in order to control inflation sent the U.S. 10-year Treasury yield up 1.5%, its highest level since June, while the 5-year rate rose above 1% the highest since February 2020
In a rising rate and inflationary environment, where current earnings are more important than future ones, growth sector was less attractive to investors, dragging Tech lower.
Apple, Facebook, Google-parent Alphabet, Amazon.com and Microsoft all ended more than 2% lower, while chip stocks pushed the tech sector further down, with ASML, Applied Materials and Teradyne the biggest decliners.
Some green was seen in the Energy sector.
Consumer confidence fell due to delta variant, with consumer confidence index down to 109.3 from 115.2, despite economists’ estimates for a reading of 115.0
(Written and edited by: The Decision Maker)