Stock market today
A selloff today for the US stock market. Dow Jones, S&P 500, and Nasdaq all fell more than 1.5%. Nasdaq underperformed. Tech stocks got hit today. The closing numbers for the US stock market today follow.
S&P 500: 4,352.63,-90.48(-2.04%)
Dow 30: 34,299.99,-569.38(-1.63%)
Russell 2000: 2,229.78,-51.23(-2.25%)
Stock market news today
“Stocks sank Tuesday, with technology stocks leading the way lower as investors nervously eyed a swift rise in U.S. Treasury yields.
The Nasdaq, a proxy for technology and growth stocks, underperformed against the other two major stock indexes, dropping more than 2.8% by market close in its worst day since March. The S&P 500 also dropped 2%, while the Dow shed more than 550 points, or 1.6%. A new disappointing report on consumer confidence in September added to the risk-off mood in markets, with the Conference Board’s closely watched Consumer Confidence Index dropping to the lowest level since February as concerns over the coronavirus lingered.
The rapid rotation away from growth and technology stocks also came as Treasury yields added to recent gains. The yield on the benchmark 10-year note (^TNX) jumped more than 5 basis points to top 1.54%, reaching its highest level since June.
“The prospect of higher energy prices, fueling inflation, and rises in bond yields that appear to be pre-empting tighter monetary policy by central banks, have prompted widespread selling across global stock markets,” Chris Beauchamp, chief market analyst at online trading platform IG, said in an email on Tuesday. “As yesterday, it is the highly-valued growth stocks that have taken the brunt of the selling, as investors fret that a lower growth, tighter policy environment will hurt these previous star performers.”
“Undoubtedly, some of the fabled month/quarter-end movements have a part to play here, fund managers being keen to book some profits as Q3 draws to a close,” he added. “This suggests we have some more volatility to come over the rest of the week.”
Yields, which move inversely to prices, have held at low levels throughout the pandemic, and rising yields are seen in large part as a bet on a strengthening economic environment. However, the rapid rise in borrowing costs also serves as a headwind to “long-duration” growth stocks, which are valued heavily on future earnings.”
Stock market commentary
You can read also today’s stock market commentary.