On Tuesday, all three key indices of Wall Street had rounded off the session in a downbeat tone in context of a growing rancour over a recent trend of a sharp fallback of tech stocks amid frets of valuations, though materials and cyclicals kept soaring as investors were awaiting US Senate’s approval for another trillion-dollar stimulus package that seemingly had driven up a market ‘euphoria’ about an economic recovery in a near term.
In point of fact, in the day’s tottering in the Wall Street was almost entirely led by a sharp retreat in tech stocks, while a drag in Tesla Inc and Apple Inc stocks seemed to have hauled a growing holocaust in tech shares, a majority of which had shelved strong gains in the previous session.
Besides, as another round of trillion-dollar pandemic stimulus bill had been passed into the US Senate and would likely to make it in to the White House, where the US President Joe Biden is expected to sign it off into a law as quickly as possible, investors’ focus had shifted into the cyclicals over prospects of a near-term economic recovery as beforementioned.
Wall Street falters as tech stocks retreat
Citing statistics, in the day’s Wall Street close out, trade-sensitive Dow dwindled 0.46 per cent to 31,391.52 and tech-heavy Nasdaq was nudged as much as 1.69 per cent lower to wind down the session at 13,358.79, while benchmark S&P 500 shed 0.81 per cent to 3,870.29, largely heaved down by a 2 per cent decline in Apple Inc alongside a 4 per cent nosedive of Tesla Inc stocks.
Meanwhile, addressing to an utterly overvalued US tech stocks alongside the likelihoods of a higher interest rate with inflations indicators flaming up, a global investment strategist at US Bank Wealth Management, Tom Hainlin said, “Part of it is just because technology went up so much last year, and if interest rates are on the rise then the value of their future cash flows is diminished. ”