Tech stock slides dragged down Wall Street

Shares of major tech companies fell on Monday, dragging stocks such as Apple, Microsoft, Facebook and Amazon to a low of the S&P 500 in late July.

The benchmark index fell 1.3 percent, leading to an official correction for more than half the time যখন when stocks fell 10 percent from their all-time high. Some technology in the index led to the fall of the heavyweights.

Facebook was among the five worst-performing stocks in the S&P 500, with Instagram, WhatsApp and Naming falling 4.9 percent as Facebook services shut down.

Frustration about companies and the broader technology industry has been growing in U.S. financial markets in recent weeks, with tech-heavy Nasdaq Composite falling 7.5 percent from a record high hit last month. It fell 2.1 percent on Monday.

The fall was due to higher interest rates and frustration among investors in the US মার্ 50tn US stock market for tighter monetary policy.

Tax companies served as a haven for investors in the coronavirus epidemic but were ready to begin removing crisis-stimulating measures as policymakers for the Federal Reserve. It has sent rapid yields on government bonds in recent days.

High-growth technology stocks are particularly sensitive to rising interest rates, as their valuation depends on large and growing profits for many years to come. Their own higher interest rates also make treasuries more attractive to investors looking for income.

Mike Wilson, an equity strategist at Morgan Stanley, said, “Tapping is getting tough for stocks, even if it’s not for the economy.” “In short, higher actual rates mean lower equity prices.”

The yield on the U.S. government’s 10-year Treasury, which rises as the price of notes falls, rose 0.02 percentage points to 1.48 percent. That put it below its three-month high last week and up nearly 1.3 percent from two weeks ago.

“We are in an environment that seems to be the opposite of Goldilocks,” said Cosimo Marasiulo, head of the absolute return on investment at fund manager Amundi, referring to an economic environment where growth is healthy but inflation remains. “We can get upward pressure on inflation and interest rates.”

In Europe, the Stocks 600 index closed down 0.5 percent after falling 2.2 percent last week. London’s FTSE 100 fell 0.2 percent. Hong Kong’s Hang Seng stock index was down 2.2 percent the day before.

US oil prices hit a seven-year high despite rising oil demand despite rising oil demand as producer group OPEC + stuck to existing output plans at its latest meeting. Members agreed to add 400,000 barrels per month production by the end of next year this summer.

West Texas Intermediate, U.S. oil benchmark, reached $ 8 a barrel, its highest level since 201, rising 2.3 percent to .. 77.62 a barrel. Brent, the international benchmark, rose $ 82 a barrel for the first time in three years to 81 81.26 a barrel, up 2.5 percent.

US crude oil showing line chart has reached its highest level since 201

U.S. economic output is expected to moderate after a coronavirus vaccine-driven bounce in the first months of the year. Meanwhile, investors continue to face the threat of inflation due to rising fuel prices and severe disruptions in the supply chain due to epidemic control and labor crisis.

Fed Chairman Jay Powell has hinted that the central bank will announce plans to reduce monthly bond purchases in November, seeing progress in the labor market.

Jim Reid, a strategist at Deutsche Bank, said a report by a non-farm firm in the United States could be on Friday, “probably the catalyst for cementing the November taper.” Bloomberg survey analysts expect U.S. employers to hire nearly half a million new workers last month.

The dollar index, which measures the U.S. currency against six others, fell 0.2 percent after hitting a one-year high last week. The British pound rose 0.5 percent to 3 1.361.

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