U.S. stocks dropped Thursday, weighed down by decreases in technology shares.
The Dow Jones Industrial Average slumped 0.6% after closing Wednesday at an all-time high. The S&P 500 fell 0.9%, and the Nasdaq Composite lost 1.4%.
Stocks have wobbled the previous week as investors have faced a sharp and quick increase in bond yields. The shift, which cash managers have actually broadly credited to bets on inflation and development getting, has actually tempered enthusiasm for some of the costlier sectors of the stock exchange.
The S&P 500 technology sector moved 1.6% Thursday, amongst the worst-performing groups in the index. Parts of the market believed to benefit most from rising economic growth, like financials and energy, wobbled between little gains and losses.
” The market is tense. The bond yields increasing is putting equities, particularly growth stocks, under pressure,” stated Sebastien Galy, a macro strategist at Nordea Asset Management. “There is a little a danger decrease broadly.”