Nasdaq Composite and S&P 500 fell as bond yields surge
Nasdaq Composite and S&P 500...
Subscribe to Newsletter

Nasdaq Composite and S&P 500 fell as bond yields surge

4 March 2021
3428
2 min.
12
Nasdaq Composite and S&P 500 fell as bond yields surge

US indices fall

Technology stocks declined on Wednesday and the preceding days, while stocks in the financial, industrial and other sectors, which could rise after a pandemic, increased.

Major US stock indices fell sharply on Wednesday, continuing last week's decline:

  • The broad S&P 500 index closed down 1.31% on Wednesday, extending its weekly decline to -2.7%;
  • The tech-heavy Nasdaq Composite fell 2.7%, losing 4.4% for the week;
  • Dow Jones was down 0.39% and down 2.16% over the past week.

The market fall was led by declines in shares of major technology companies such as Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG, GOOGL), down 2.5% and higher. Netflix (NFLX) shares were down almost 5% at the close of trading on Wednesday.

Analysts attributed this to a continued strong rise in 10-year Treasury bond yields. After rising to a high of 1.6% last week, their yield reached a high of 1.49% during Wednesday but closed lower.

This increase in bond yields is causing investors to worry about valuations in equities and rising inflation. Higher bond yields could hit tech stocks especially hard, as they rely on borrowing for faster growth.

At the same time, shares of financial, industrial and energy companies, as well as those that will benefit most from the end of the pandemic, rose on Wednesday. Their rise was based on US President Joe Biden's announcement on Tuesday that by the end of May the country would have enough stockpiles of vaccines against the coronavirus to vaccinate every adult, which would be two months ahead of schedule. The introduction of the vaccine is seen as a key factor in getting Americans back to work and recovering the economy. Shares in American Airlines (AAL) surged 3.4% on Wednesday, while cruise lines Carnival (CCL) and Norwegian Cruise Line (NCLH) jumped 3.9% and 6.3% respectively. The S&P 500 financial and industrial sector indices reached daily record highs.

Federal Reserve (Fed) officials noted that the US economic recovery has continued at a moderate pace since the beginning of this year. Corporate spending is rising and housing demand is "robust", but the labour market is still showing slow improvement.

Persons1 and Companies11 in the news

46th President of the United States
1 place
Nasdaq
2 place
Dow Jones
3 place
Netflix
5 place
Microsoft
8 place
Apple
10 place
Amazon
11 place
Section:
Rating companies
Netflix
18 Mention
Instagram
16 Mention
X (Twitter)
11 Mention
Tesla
10 Mention
Amazon
8 Mention
TikTok
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8159412493
Died this year
46290563
Born this year
113882978