Wall Street closed sharply lower on Monday, after investors started the week shortened by a holiday in a climate of low demand for risk, as rising bond yields weighed on growth stocks – which weigh heavily on indices – before the release of important US inflation data.
The three major US stock indices ended lower. Tech and related stocks pushed the Nasdaq down 2%.
“There have been two types of liquidation in the last month or two,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “There is the yield rise, which mainly affects tech and other growth stocks, and there is the recession/economic downturn liquidation, which affects energy and raw materials names.”
“Today you are seeing both of them.”
The returns of Treasuries ten-year inflation hovered near a three-year high before the release of key inflation data on Tuesday.
The S&P 500 index closed down 1.69% at 4,412.53 points. The Dow Jones fell 1.19% to 34,308.08 points. The Nasdaq Composite technology index fell 2.18% to 13,411.96 points.
All 11 major sectors of the S&P 500 ended the session in the red. Energy papers suffered the largest percentage losses.
Source: CNN Brasil
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