- Nasdaq is in decline
- Twitter is falling as Hindenburg’s seller notes the risk of a deal with Musk
- Excluded indices: Dow 1.6%, S&P 500 2.8%, Nasdaq 4%
NEW YORK, May 9 (Reuters) – US stocks fell sharply on Monday, with the S&P 500 reaching its lowest level since April 2021, driven by a drop in stocks with mega-capital growth after the reference 10-year yield hit new 3-1 / 2-year highs and investors became more concerned about interest rate prospects.
The Nasdaq fell more than 3%, while Apple shares (AAPL.O) also fell more than 3%, the biggest weight for the Nasdaq and S&P 500.
The reference 10-year yield on US government bonds reached its highest levels since November 2018 at the beginning of the session.
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Investors are worried about how aggressive the Federal Reserve will have to be to curb inflation. The US Federal Reserve recently raised interest rates by 50 basis points.
“Markets are beginning to return to a more normal monetary policy environment,” said Christina Hooper, chief global market strategist at Invesco in New York.
“The more aggressive movement raises the specter of a recession, especially with all these complications – high inflation, Russia’s invasion of Ukraine, COVID-related supply chain disruptions,” she said.
Investors are also concerned about the economic slowdown in China following the recent rise in COVID cases.
The Dow Jones Industrial Average (.DJI) fell 525.94 points, or 1.6%, to 32,373.43, the S&P 500 (.SPX) lost 116.11 points, or 2.82%, to 4,007.23. and the Nasdaq Composite fell 1 point (.IX86) 4% to 11,658.53.
The S&P 500 reached its lowest level since April 2021, while the Nasdaq reached its lowest level since its lowest level since November 2020.
Growing stocks have been among the most difficult in recent sales, as their returns and valuations are discounted more deeply as yields rise.
The energy sector (.SPNY) also collapsed with falling oil prices.
Twitter Inc. (TWTR.N) fell more than 3% as Hindenburg Research took a short position in shares of the social media company, saying that the company’s $ 44 billion deal to sell to Elon Musk has a significant risk of -Low price. Read more
Emission reductions outnumber the advanced NYSE by 7.12 to 1; of the Nasdaq, a ratio of 5.70 to 1 favors declines.
The S&P 500 publishes 1 new 52-week highs and 67 new lows; The Nasdaq Composite recorded 13 new highs and 1,146 new lows.
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Additional reports by Devik Jain and Amruta Khandekar in Bengaluru; Edited by Shunak Dasgupta, Anil D’Silva and Aurora Ellis
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