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Stocks Down On Wall Street As Tech Issues Slump
- By The Financial District
- Apr 12, 2022
- 2 min read
Technology companies led a broad slide for stocks on Wall Street and bond yields rose again Monday as investors look ahead to the upcoming company earnings reporting season and what it will reveal about the impact inflation is having on corporate profits, Damian J. Troise and Alex Veiga reported for the Associated Press (AP).
Photo Insert: Technology stocks were again the biggest weights on the market Monday.
The S&P 500 fell 1.7%, adding to its recent losses. The Dow Jones Industrial Average fell 1.2% and the tech-heavy Nasdaq slid 2.2%. Both the benchmark S&P 500 and the Nasdaq are coming off their first weekly losses in four weeks.
Bond yields rose. The yield on the 10-year Treasury climbed to 2.78% from 2.71% late Friday. Bonds have been rising amid expectations of higher interest rates as the Federal Reserve moves to squelch inflation.
The market “is still reacting to what’s happening in the bond market,” said Willie Delwiche, investment strategist at All Star Charts.
“You have yields, not just in the U.S. but around the world, moving sharply higher and that’s putting pressure on (stocks) generally. That was the story last week, and it’s the story this week.”
Higher rates hurt all kinds of investments, particularly stocks that are seen as the most expensive, such as those of Big Tech companies. As bonds offer better returns for less risk, that makes pricey stocks less attractive, which is why the heaviest selling has been concentrated in technology and other growth stocks as inflation fears have rattled the market.
Technology stocks were again the biggest weights on the market Monday. Microsoft fell 3.9% and Apple shed 2.6%.
All 11 sectors in the S&P 500 fell. The index ended down 75.75 points to 4,412.53. The Dow lost 413.04 points to 34,308.08, while the Nasdaq slid 299.04 points to 13,411.96. Small company stocks held up better than the rest of the market. The Russell 2000 fell 14.24 points, or 0.7%, to 1,980.32.
