Techs slammed as bond yields climb
US stocks fell on Thursday, dragged down by tech stocks, as higher bond yields fueled fears of stock valuation and prompted investors to sell high-end, growth-oriented stocks.
The Dow Jones Industrials index improved from Wednesday’s all-time high, 193.57 points to greet Thursday noon to 33,208.94, supported mainly by bank stocks.
The S&P lost 9.25 points to 3,964.87.
The NASDAQ Composite plunged 165.56 points, or 1.2%, to 13,355.64. like Apple, Alphabet, Microsoft and Facebook all fell by at least 1%
Bank stocks outperformed as rising interest rates tended to improve their profit margins. Banks can benefit more from the widening gap between the rate at which they borrow in the short term and the rate at which they lend in the long term. JPMorgan jumped 2%, while Goldman
Sachs gained 1.9%. Citizen Financial jumped 4% and Zions Bancorp by 3.6%.
Investors digested a mixed bag of economic data on Thursday. Weekly jobless claims stood at 770,000 for the week ended March 13, worse than an estimate of 700,000, according to an economist surveyed by Dow Jones.
Meanwhile, the Philadelphia Federal Reserve’s manufacturing index showed a reading of 51.8, well above the Dow Jones consensus of 22.0 and reaching the gauge’s highest level since 1973.
10-year Treasury bill prices fell, raising yields to 1.73% from 1.65% on Wednesday. Treasury prices and yields move in opposite directions.
Oil prices fell $ 2.78 to US $ 61.82 per barrel.
Gold prices got a dollar at $ 1,728.10.