On Thursday, all three key indices of Wall Street had rounded off the session sharply lower with tech-heavy Nasdaq reporting its steepest intra-session plunge in more than four months, as tech-stocks remained under a tremendous scale of pressure following a rapid rise in US bond yields.
In point of fact, in the day’s mass-scale sell-off wave in the Wall Street was mostly driven by an abrupt upsurge in US bond yields, while benchmark 10-year US Treasury bond yields had spiked to a fresh one-year peak of 1.614 per cent, prodding investors to join a havoc-scale sell-off wind amid growing jitters over higher valuations of a number of US stocks.
Aside from that, the so-called FAANG stocks had led the downfall in the day’s Wall Street with shares’ prices of Facebook, Apple, Amazon, Netflix and Google tumbling between 1.2 per cent to 3.6 per cent. Nonetheless, Twitter stocks rose 3.71 per cent after it had laid out a plan to double up revenues by 2023, while GameStop shares soared again on Thursday despite a broad-based slide in the US money markets, mostly led by a surprise entrance of the so-called Main Street retail investors, while after surging as much as 90 per cent earlier in the day, GameStop Corp.
shares’ prices wrapped up the session 18.6 per cent higher.
Wall Street ends sharply lower as higher US bond yields weigh
Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow dwindled 1.75 per cent to 31,402.01 and benchmark S&P 500 took a lofty header of 2.45 per cent, while leading the tally of losses, tech-heavy Nasdaq had crumbled as much as 3.52 per cent to 13,119.43.
Meanwhile, addressing to an inevitable downward spiral in an overvalued US stock market that had hit fresh closing highs many times over the recent past, a market analyst at Chase, Tuz said, “You’ve had an equity market that’s hit record highs many times this year and it’s expensive relative to historic norms. We were primed for a sell-off”.