The US markets ended lower on Tuesday with losses led by the technology-laden Nasdaq Composite Index, as the high-growth tech sector fell under pressure from climbing Treasury yields and investors began digesting a busy week for company earnings. The technology-focused Nasdaq sits more than 10% from its most recent high and closed below its 200-day moving average for the first time since April 2020. Tesla dropped 1.8%. Meta Platforms and Amazon fell 4.1% and about 2%, respectively. The shortened trading week will feature quarterly reports from 35 companies in the S&P 500, including Bank of America, UnitedHealth and Netflix. US markets were closed Monday due to the Martin Luther King Jr. holiday.
markets dropped sharply as Treasury yields rose in anticipation of the Federal Reserve tightening monetary policy this year. The yield on the 10-year Treasury note rose 9.5 basis points on Tuesday to 1.866%, the highest in about two years based on trading levels at 3 p.m. Eastern Time. The yield on the 2-year Treasury note which is more sensitive to Fed policy expectations, shot up 7.3 basis points to 1.038% to reach the highest level since late February 2020. Meanwhile, Goldman Sachs shares dropped nearly 7% after the bank missed street’s expectations for its fourth-quarter earnings. Goldman's operating expenses surged 23% on increased pay for Wall Street employees.
Dow Jones Industrial Average declined 543.34 points or 1.51 percent to 35,368.47, Nasdaq fell 386.86 points or 2.6 percent to 14,506.9 and S&P 500 was down by 85.74 points or 1.84 percent to 4,577.11.
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