It was a strong start to the week as the S&P 500 surged Monday in its strongest single-day rally since June. All 11 S&P 500 sectors rallied, led by financials and tech. By Monday’s close, the S&P was up 91 points, the Dow jumped 603 and the Nasdaq added nearly 400. In Canada, the TSX also registered strong, broad-based gains, adding 240 points. U.S. stocks fell Tuesday, as investors once again retreated from high-flying technology names as concerns over rising bond yields and inflation re-emerged, even though bond yields retreated slightly on Tuesday. The Nasdaq shed 230 points, while the Dow and S&P registered smaller losses. In Canada, the TSX bucked the trend, adding 122 points, supported by rising gold prices.
It was another rough day for the Nasdaq Wednesday as investors sold off technology names in favour of cyclicals. The technology-heavy Nasdaq plunged 361 points; the TSX dropped 101, also on technology weakness; while the S&P fell 121. The fear among many investors is that rising interest rates and the spectre of stimulus-induced inflation could disproportionately hurt the future earnings and valuations of high-growth technology names.
The technology selloff intensified Thursday and Treasury yields rose above 1.54%, despite Fed Chair Powell’s pledge to keep interest rates low. The Nasdaq lost 274 points — nearly finishing in correction territory – while the Dow and S&P surrendered 346 and 51, respectively. Meanwhile, the TSX closed down 195 points, although rising crude prices helped temper Thursday’s overall losses.
source https://richarddri.ca/tech-stocks-volatile-as-concerns-persist-over-rising-yields-inflation/
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