Here are today’s market moves:
S&P 500 down 1.31% to 3,819.72
Dow Jones down 0.39% to 31,270.09
Nasdaq down 2.70% to 12,997.75
Gold: $1,714
Bitcoin: $51,113
US10Y: 1.477%
What Happened?
Major stock indexes fell today as investors grappled with concern over stretched valuations and rising treasury yields. The S&P 500 closed down 1.31% and the Nasdaq fell 2.70% to 12,997 (a two-month low).
The yield on the benchmark 10-year U.S. Treasury note approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008.
Analysts say that President Biden’s $1.9 trillion stimulus package will boost economic growth but that it will also increase consumer prices.
The rise in yields, according to top central bank officials, reflects optimism about the economic outlook, and they expect to keep monetary policy loose for the foreseeable future.
Tech companies that could be vulnerable in a rising rate environment fell the hardest today, weighing down the broader equities market.
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.