Thursday, October 21, 2021

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    High-tech stocks leading the decline on Wall Street

    In Tuesday morning trading, stock prices plummeted after being mixed in the course of the previous session. All major averages slipped firmly into the negative territory, led by the tech-heavy Nasdaq.

    The key average fell further in recent trading, hitting a new low for the session. The Dow fell 354.30 points or 1% to 34,515.07, the Nasdaq fell 308.46 points or 2.1% to 14,661.51, and the S & P 500 fell 64.99 points or 1.5% to 4,378.12.

    Technology stocks helped drive the day’s decline amid continued rises in government bond yields.

    Benchmark 10-year bond yields reached their highest levels in more than three months, extending the upward movement seen since the announcement by the Federal Reserve Board last week.

    The rise in financial yields, which moves in the opposite direction to bond prices, is due to the Fed’s plans to begin curtailing asset purchases in the near future.

    Also contributing to continued progress in yields, Federal Reserve Board Chair Jerome Powell warned members of the Senate Banking Commission during his testimony this morning about the upside risks to inflation.

    In a prepared statement, Powell predicted that inflation would remain on the rise for the next few months before it eased.

    “As Economy Resumptions and recovery in spending continue, putting upward pressure on prices, especially due to supply bottlenecks in some sectors. “

    “These effects are greater than expected and lasting, but will weaken, and inflation is expected to fall towards the long-term 2% target,” he added.

    Powell warned that as the economy continued to reopen, supply bottlenecks, employment difficulties and other constraints could increase and pose an upward risk to inflation.

    “If sustained high inflation becomes a serious concern, we will ensure that we respond and use tools to ensure that inflation is carried out at a level that is in line with our goals,” said the Fed’s chief. Said.

    In addition to Wall Street’s negative sentiment, the congressional committee released a report that unexpectedly showed the continued deterioration of US consumer confidence in September.

    The Conference Board said the Consumer Confidence Index fell from 115.2, which was revised upward in August, to 109.3 in September.

    This decline surprised economists who expected the index to rise from 113.8, which was first reported last month, to 114.8.

    Software stocks have shown a significant downtrend in morning trading, with the Dow Jones US Software Index declining 2.7% to its lowest daytime level in more than a month.

    Semiconductor and biotechnology stocks are also showing considerable weakness, contributing to the plunge caused by the tech-intensive Nasdaq.

    Steel stocks also show significant weaknesses, as reflected in the 2.6% decline in the NYSE Arca Steel Index.

    Retail, pharmaceutical and chemical inventories have also fallen sharply, but energy inventories have receded the downtrend amid a gradual rise in crude oil prices.

    In overseas transactions, stocks market During the trading on Tuesday, various performances were seen throughout the Asia Pacific region. Japan’s Nikkei 225 Index fell 0.2%, while China’s Shanghai Composite Index rose 0.5%.

    Meanwhile, all major European markets have moved down that day. The UK’s FTSE 100 index fell 0.3, while the German DAX index fell 1.6% and the French CAC 40 index fell 2.2%.

    In the bond market, government bonds are expanding the notable downturn seen in the last few sessions. As a result, the yield on benchmark 10-year bonds, which move in the opposite direction of price, rises 6 basis points to 1.544%.

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    High-tech stocks leading the decline on Wall Street

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    The post High-tech stocks leading the decline on Wall Street appeared first on Eminetra.

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