On Tuesday, all three key indices of Wall St. fell in a heap with tech-stocks leading the losses, as an upsurge in US Treasury bond Yields had lured investors away from the tech-related growth stocks amid concerns of a higher inflation.
In point of fact, in the day’s moderate decline in the Wall St., was mostly catalysed by a rise in market participants’ concerns about a higher inflation, as the US President Joe Biden’s mega-infrastructure plan, which might augment a jawdropping $3 to $4 trillion in additional expenses, stoked fresh jitters of an inflation hike in a near term, eventually prompting the investors to ditch out growth stocks while cashing in on the cyclicals which would be benefitted by the most following a havoc-scale influx of liquid capital into the US economy.
More importantly, while tech-related growth stocks had borne the heaviest brunt in the day’s Wall St., S&P 500’s financials, industrials and cyclicals shares were gaining grounds, as investors seemed to have extended their latest leg of pirouette between so-called growth and value stocks.
Nonetheless, tech stocks had pared some of their earlier losses in late-afternoon trading following an ease-off of US 10-year Treasury bond Yields, which had hit a 14-month peak of 1.77 per cent earlier in the day, still, S&P 500 tech sector had wrapped up the session more than 1 per cent lower, while Nasdaq had been well en route to log its first monthly loss since November 2020.
Wall St. in bedlams as stronger Dollar, Treasury bond Yields weigh
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow dwindled 0.31 per cent to 33,066.96 and benchmark S&P 500 lost 0.32 per cent to 3,958.55, while tech-heavy Nasdaq shed 0.11 per cent to 13,045.39.
Meanwhile, referring to an incessant rotation in investors’ appetite over recent months, a chief investment strategist at Inverness Counsel in New York, Tim Ghriskey said, “It’s somewhat of a leadership-less market.
Investors’ preferences are flipping around here almost on a daily basis, primarily between tech plus and cyclicals. ”