Here are today’s market moves:
S&P 500 down 0.81% to 3,870.29
Dow Jones down 0.46% to 31,391.52
Nasdaq down 1.69% to 13,358.79
Gold: $1,737
Bitcoin: $47,913
US10Y: 1.39%
What Happened?
U.S. stocks fell after Monday’s rally (the largest since June of last year) sparked worries about excessive investor optimism. The S&P 500 closed down 0.81% and the Dow Jones closed down 0.46%.
On Tuesday, China’s top banking regulator said that he is “very worried” about risks from bubbles in global financial markets.
Financial markets have been volatile in recent days as investors have tried to make sense of movements in bond yields.
The yield on the benchmark 10-year U.S. Treasury note has moved up rapidly in 2021, pushing investors away from riskier assets. Investors fear that a fast rise in rates could push the Federal Reserve to begin tightening monetary policy earlier than expected.
Technology shares are especially sensitive to higher rates, explaining why they have been hit especially hard in recent days.
What Else?
This Week
Monday: Earnings expected from Zoom, Nio, Workhorse, and Novavax.
Tuesday: Earnings expected from Target, Lemonade, Nordstrom, Ross, and Kohl's.
Wednesday: Earnings expected from Snowflake and Wendy's.
Thursday: Earnings expected from Costco; Weekly jobless claims.
Friday: Earnings expected from Big Lots; February U.S. employment report released.