Tech Selloff Drags Down US Stocks as Bond Yields Surge and Earnings Loom
Staff Editor US Stocks Tumble as Tech Shares Lead Market Decline
US stocks experienced their worst performance in over a month on Tuesday, with rising bond yields dragging tech shares lower. The major indices saw substantial declines, with the Dow Jones Industrial Average and Nasdaq Composite both registering significant losses.
The tech-heavy Nasdaq bore the brunt of the selloff, losing nearly 2% as large-cap tech stocks faced downward pressure. Apple shares dropped over 2% following reports of waning demand for the iPhone 16. Other tech giants, including Nvidia, Amazon, and Microsoft, also saw their stock prices fall. Tesla shares declined 2% ahead of its anticipated third-quarter earnings report.
Bond yields continued their upward trajectory, contributing to the stock market’s poor performance. The 10-year US Treasury yield briefly surpassed 4.25%, reaching its highest level since July. Traders adjusted their expectations for future Federal Reserve rate cuts in light of strong economic data.
Market analyst Louis Navellier commented on the current market conditions, emphasizing the need for earnings surprises to boost stock prices. Investors are closely watching upcoming earnings announcements, which are expected to significantly influence market dynamics in the coming days.
In other market news, McDonald’s stock fell 5% following reports of an E. coli outbreak linked to its Quarter-Pounder. The Centers for Disease Control and Prevention reported one death and multiple hospitalizations related to the outbreak.
At market close, the S&P 500 ended at 5,797.42, down 0.92%. The Dow Jones Industrial Average closed at 42,514.95, dropping 0.96%, while the Nasdaq Composite finished at 18,276.65, down 1.6%.
The broader economic context saw existing home sales hit a 14-month low in September, while energy markets faced volatility amid geopolitical tensions and China’s stimulus efforts. In commodities, West Texas Intermediate crude oil decreased by 1.37% to $70.76 a barrel, while gold prices slipped 1.2% to $2,715.75 an ounce.
As markets continue to navigate uncertain terrain, investors remain vigilant, closely monitoring economic indicators and corporate earnings for signs of future market direction.
