Here are today’s market moves:
S&P 500 down 1.48% to 3,915.46
Dow Jones down 0.46% to 32,862.30
Nasdaq down 3.02% to 13,116.17
Gold: $1,735
Bitcoin: $57,641
US10Y: 1.71%
What Happened?
U.S. stocks tumbled on Thursday as shares of technology companies and other high-growth stocks fell victim to another selloff in the government bond market.
Ten-year Treasury yields climbed to 1.75% for the first time since January 2020.
Higher yields mean borrowing costs for businesses and individuals will go up, which isn’t good news for stocks.
Tech and high-growth stocks were hit hardest today as they are the most sensitive to rising yields. Apple and Amazon both fell more than 3% , while Tesla fell 7%.
The French capital Paris is set to go into a month-long Covid lockdown as the country fears a third wave. Oil prices fell 7% after the announcement.
Jobless claims in the US. totaled 770,000 for the week ended March 13, above the 700,000 estimate.
As the economy begins to reopen, people are rotating out of “pandemic” stocks (work from home + tech stocks) into sectors that are expected to rebound with the economy.
What Else?
This Week
Monday: Earnings expected from H&M.
Tuesday: Earnings expected from Coupa and Volkswagen.
Wednesday: Earnings expected from Lennar; Fed policy meeting – Jerome Powell is likely to reiterate his no-tightening policy stance.
Thursday: Earnings expected from Dollar General, FedEx, and Nike; Weekly jobless claims.
Friday: Earnings expected from BRP.