U.S. bond yields rose causing panic as the hammer came for Tech stocks on Tuesday, leading to a drop in Wall Street.
Nasdaq is set for its first monthly loss since November. Due to the recent upsurge in yields, investors shifted their attention away from growth stocks to value stocks.
The S&P 500 Index decreased by (-0.32%) to close at 3,958.55 index points on Tuesday. The Dow Jones Industrial Average dropped 104.41 points, or 0.3%, to 33066.96. The Nasdaq Composite slipped 14.25 points, or 0.1%, to 13045.39.
- Bank stocks rebounded 2.2% as investors took solace from signs that the impact from the fall of a U.S. hedge fund didn’t ripple out to broader markets.
- The yield on the 10-year Treasury notes, meanwhile, rose to 1.724%, from 1.721% on Monday.
Top gainers
- DXC Technology up 9.11% to close at $31.14.
- Apartment Invest up 5.41% to close at $6.23
- Discovery Communications C up 5.38% % to close at $37.01
- Discovery A up 5.36% to close at $43.44
- Capri Holdings up 5.33%to close at $49.33
Top losers
- Illumina down 6.59% to close at $368.96
- MarketAxesss down 4.05% to close at $495.95
- Newmont Goldcorp down 3.67% to close at $59.88
- Tapestry down 3.48% to close at $456.16
- Macirich down 3.14% to close at $194.87
Outlook
Wells Fargo & Co soared 3% after the financier said it had a prime brokerage relationship with Archegos Capital and that it no longer had any exposure and did not experience any losses.
- Value stocks are expected to keep increasing in the coming days.
- Nairametrics, however, advises cautious buying in this era of growing uncertainties.
