Here are today’s market moves:
S&P 500 down 0.77% to 3,876.50
Dow Jones up 0.087% to 31,521.69
Nasdaq down 2.46% to 13,533.05
Gold: $1,809
Bitcoin: $54,506
US10Y: 1.369%
What Happened?
Tech shares tumbled today as investors questioned the appeal of expensive, growth-focused stocks. The Nasdaq closed the day down 2.46%.
The S&P 500 fell for the fifth straight day in a row, its longest losing streak in a year.
The yield on 10-year Treasuries rose three basis points to 1.36%. Bond yields have been on the rise recently as investors price in stronger growth and faster inflation as the global economy rebounds.
Government bonds, often seen as a haven investment, become more attractive as treasury yields rise, while riskier assets such as tech stocks become less attractive.
Tesla shares fell 8.6%, to $714.50 – its biggest fall since September 2020. The drop comes as investors rotate out of big tech and pile into cyclical stocks. Some analysts also believe that Tesla may be dragged down by the price of Bitcoin.
Fed Chair Jerome Powell will testify before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. Investors will be waiting to hear what the Fed thinks about rising bond yields.
What Else?
This Week
Monday: Earnings expected from Palo Alto Networks.
Tuesday: Earnings expected from Home Depot and Square; Jerome Powell to testify before the Senate Banking Committee.
Wednesday: Earnings expected from Lowe's and Nvidia; Jerome Powell to testify before the House Financial Services Committee.
Thursday: Earnings expected from Airbnb, Best Buy, Domino's, HP, Salesforce, and Wayfair; Weekly jobless claims.
Friday: Earnings expected from Foot Locker.