Tech Selloff Hits Wall Street as Bond Yields Surge, but Weekly Gains Persist
Staff Editor US Stocks Tumble as Tech Giants Lead Decline
US stocks experienced a significant downturn on Friday, with major indexes closing lower as mega-cap technology firms led the decline. The Nasdaq Composite fell 1.49%, while the S&P 500 and Dow Jones Industrial Average dropped 1.11% and 0.77% respectively.
The sell-off was largely attributed to rising bond yields, with the 10-year Treasury yield surpassing 4.6%. This increase in yields dampened investor appetite for equities, particularly in the technology sector.
Despite Friday’s losses, the major indexes managed to end the holiday-shortened week in positive territory. Investors remain hopeful for a potential year-end rally, commonly referred to as the Santa Claus rally.
Market analysts have expressed concerns about the current market sentiment. Alan Rechtschaffen from UBS highlighted a lack of faith in the market, while Adam Turnquist from LPL Financial warned of potential negative implications if the Santa Claus rally fails to materialize.
As of the market close, the S&P 500 stood at 5,970.84, the Dow Jones Industrial Average at 42,992.21, and the Nasdaq Composite at 19,722.03.
In other market developments, Berkshire Hathaway has been purchasing shares of VeriSign, while Wedbush predicts a 26% upside for Apple stock due to its AI strategy. Meanwhile, De Beers is reportedly accumulating a large diamond stockpile amid declining demand.
As uncertainty around trade and productivity continues to influence market sentiment, investors and analysts alike will be closely monitoring developments in the coming weeks.
