Nasdaq down 2% as technical defeat ahead of Fed minutes deepens

A screen displays a chart of stocks at a workstation on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

April 6 (Reuters) – The Nasdaq fell 2% on Wednesday as technology shares extended their sell-off for a second day in a row amid growing concerns about the Federal Reserve’s aggressive measures to fight inflation, with minutes released from the central bank’s March meeting. .

Shares of huge growth companies like Tesla Inc (TSLA.O)Apple company (AAPL.O) and Amazon.com Inc (AMZN.O) It fell between 2% and 5%, sending the Nasdaq and S&P 500 down.

High-growth stocks, whose valuations are under pressure due to higher bond yields, bore the brunt with both the 10-year benchmark and the two-year yield rising.

Fed Governor Lyle Brainard said on Tuesday that she expects a combination of interest rate hikes and a rapid run-up in the balance sheet, causing losses on Wall Street.

Matt Stuckie, senior portfolio manager at Northwestern Mutual Wealth Management Co.

“Real interest rates are up nearly 100 basis points in a matter of months. The Nasdaq is going to have more sharp pressure there versus the stock market in general.”

S&P 500 Growth Index (.IGX) It fell 2.5 percent and was on track for its worst session in nearly a month.

The FOMC meeting minutes, due out at 2 PM ET (1800 GMT), could indicate how quickly and how far policy makers will continue to carve out several trillion dollars from stockpiled assets to stabilize financial markets by epidemic. Read more

While estimates of the impact vary, Fed Chair Jerome Powell said after the March meeting that the cuts could have the same effect as an additional quarter-point increase in the short-term interest rate.

Traders now see 82% odds of a 50bp rate hike at next month’s central bank meeting. IRPR

CBOE Volatility Index (.VIX)Also known as Wall Street’s fear gauge, it rose to 24.21 points, the highest level since March 18.

US stock markets had a rough start to the year, with stocks growing (.IGX) It fell in the first quarter, down 8.8% on the back of the Fed’s more hawkish outlook, compared to a 0.7% drop in stock value. (.IVX).

At 12:40 p.m. ET, the Dow Jones Industrial Average (.DJI) It was down 263.22 points, or 0.76%, to 34,377.96 points, the Standard & Poor’s 500 . (.SPX) The Nasdaq Composite Index fell 59.94 points, or 1.32%, to 4,465.18 points (nineteenth) It was down 378.68 points, or 2.67%, to 13,825.49 points.

Meanwhile, the United States targeted Russian banks and elites on Wednesday with a new package of sanctions that include preventing any Americans from investing in Russia, after Washington and Kiev accused Moscow of committing war crimes in Ukraine. Read more

Among other stock carriers, JetBlue Airways Corp (JBLU.O) It fell 7.8% after defending its unwanted $3.6 billion bid to acquire ultra-low-cost airline Spirit. (Save. N)He said the company was “very confident” it had received regulatory approval for the deal. Spirit Airlines shares fell 1.8 percent. Read more

Declining issues outnumbered advancers by 2.84 to 1 on the New York Stock Exchange and 3.12 to 1 on the Nasdaq.

The S&P 35 recorded a new 52-week high and 21 new lows, while the Nasdaq 25 hit new highs and 181 new lows.

Additional reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru; Edited by Sriraj Kalovila and Shunak Dasgupta

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