Technology stocks hit as Wall Street turns lower
- Author: Eleanor Harrison Apr 29, 2018,
Apr 29, 2018, 13:27
The yield on the 10-year Treasury note kept setting four-year highs as it rose to 3.02 percent from 3 percent.
The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply and rising Federal Reserve borrowing costs.
US market indexes were mixed on Wednesday. Industrials fell 0.6 per cent as shares of railroad companies lost ground.
Industrial and basic materials companies and technology firms took some of the worst losses. 3M said raw materials costs are rising, especially for materials derived from crude oil, whose price has been rising, and transportation and logistics expenses are rising as well.
The index fell a total of 424.56 points or 1.74 percent by closing to 24,024.13, dropping a total of 751.21 points from its session high following a 131-point increase to open trading.
On Wednesday, the US stocks fell drastically adding up to the losses of the last session, as the investors fretted over interest rates reaching multiyear highs.
The Nasdaq composite tumbled 121.25 points, or 1.7 percent, to 7,007.35. Meanwhile, interest rates jumped to levels not seen in years.
Comcast rose 2.7 percent after the largest USA cable company confirmed its $31 billion bid for Sky on the heels of its better-than-expected earnings report. The futures on the United States oil variety WTI dropped its price by 1.14% to 67.86 Dollars per barrel.
"Fears of "peak earnings" are laughable considering that the average constituent in the S&P 500 has enjoyed year-over-year bottom line growth in excess of 20%", Klein wrote in a note.
Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year. YIELDS QUESTION: Bond prices slipped again Tuesday.
However, Twitter fell 2.4percent after the social media company said it expects a slowdown in revenue growth and increasing costs, putting a damper on its otherwise upbeat earnings report.
Technology and industrial stocks weighed on the major indexes on Tuesday, with Alphabet Inc, Facebook Inc, 3M Co and Caterpillar Inc all falling more than 3.5 per cent.
Another market favorite, online retailer Amazon, shed 3.8 percent to $1,460.09.
METALS: Gold rose 0.7 percent to $1,333 an ounce. Brent crude, used to price global oils, fell 1.1 percent to $73.86 per barrel in London. The euro rose to $1.2237 from $1.2205.
Wholesale gasoline lost 1.4 percent to $2.09 a gallon.
Japan's benchmark Nikkei 225 rose 0.9 percent, helped by the weaker yen. Hong Kong's Hang Seng lost 1.1 percent and South Korea's Kospi lost 0.6 percent.