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The S&P and Nasdaq fell 1% as higher yields hampered stock growth

The S&P and Nasdaq fell 1% as higher yields hampered stock growth
  • US revenue hits 3-year high
  • Rate-sensitive growth stocks led the decline
  • Nvidia falls down the rating
  • Indices down: Dow 0.68%, S&P 1.27%, Nasdaq 1.75%

April 11 (Reuters) – The Standard & Poor’s and Nasdaq fell more than 1 percent on Monday as rising bond yields weighed on huge growth stocks such as Microsoft, Alphabet and Apple, and investors worried ahead of inflation data on Tuesday.

Microsoft Corp. stock (MSFT.O)Apple company (AAPL.O) and Alphabet Inc (GOOGL.O) It fell between 1.9% and 3.6%, as the benchmark 10-year Treasury yield surged to 2.77% after touching a three-year high earlier in the day.

Technology Index S&P 500 (.SPLRCT) It fell 2.2% while the Philadelphia Semiconductor Index declined (.sox) It decreased by 1.7%.

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Market-leading stocks and technology growth, buoyed by record low interest rates, have been under pressure since late March due to signals from the US Federal Reserve that it will raise interest rates aggressively to control spiraling inflation. Read more

“There are concerns about growth at the same time, and that is due to a kind of slowdown in the second half of the year if we look at GDP growth, along with higher interest rates at the front end of the curve, causing people to worry about growth in the future,” he said. Jim Kahn, Head of Investments and Business Development at Wealth Enhancement Group, in the short term.

Data on Tuesday is expected to show that US consumer prices jumped to a four-decade high of 8.5% in March, on an annual basis, after hitting 7.9% in February, as the conflict in Ukraine pushed up energy costs.

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Electric vehicle maker Tesla Inc (TSLA.O) It fell 3.6% after data showed a decline in car sales in China in March, affected by the restrictions imposed by the country to curb the outbreak of the Corona virus. Read more

nvidia company (NVDA.O) It fell 6.0 percent after Bird downgraded the chip maker. Chip stocks were among the worst victims of the tech sell-off, with the Philadelphia Semiconductor Index (.sox) It’s down 22.2% so far this year compared to a 13.8% drop on the Nasdaq (nineteenth).

Investors will also focus on major US banks, which begin their first-quarter earnings season on Wednesday. It is expected to show a sharp decline in quarterly earnings compared to the previous year. Read more

S&P 500 . Value Index (.IVX)which includes banking and energy stocks, outperformed its peers in growth (.IGX) So far this year, with the former almost flat, while the growth index has fallen by 12.8%.

Growth stocks and 10-year treasury yield

At 12:45 p.m. ET, the Dow Jones Industrial Average (.DJI) It was down 235.40 points, or 0.68%, at 3,4485.72 Standard & Poor’s 500 (.SPX) The index fell 56.89 points, or 1.27%, to 4,431.39 points, and the Nasdaq Composite Index (nineteenth) It was down 239.36 points, or 1.75%, to 13,471.63 points.

Twitter Inc (TWTR.N) It rose 1.9% in choppy trade, reversing its losses before the market after the social media company said Tesla Chairman Elon Musk rejected its offer to join the company’s board of directors. Read more

Media and broadcast company Warner Bros Discovery Inc (WBD.O)formed from the $43 billion merger of Discovery Inc and the assets of AT&T Inc (Tennessee), by 2.4% on the first day of trading. AT&T shares gained 6.8%. Read more

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Declining issues outnumbered advancers by 2.32 to 1 on the New York Stock Exchange and by 2.14 to 1 on the Nasdaq.

The S&P posted 34 new 52-week highs and nine new lows, while the Nasdaq hit 26 new highs and 271 new lows.

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Additional reporting by Bansari Mayor Kamdar and Praveen Paramasivam in Bengaluru and Stephen Kolb in New York; Edited by Shunak Dasgupta

Our criteria: Thomson Reuters Trust Principles.