US Stocks Lower in Morning Trade 09/28 09:38
Stocks fell broadly in morning trading on Wall Street Tuesday as bond yields
continued marching higher and put more pressure on big technology companies.
(AP) -- Stocks fell broadly in morning trading on Wall Street Tuesday as
bond yields continued marching higher and put more pressure on big technology
The S&P 500 fell 1.4% as of 10:10 a.m. Eastern. The Dow Jones Industrial
Average fell 350 points, or 1%, to 34,519 and the Nasdaq fell 2%.
Bond yields continued rising. That tends to draw money out of sectors like
technology with lofty valuations. The yield on the 10-year Treasury rose to
1.55%, the highest since late June. It was at 1.48% late Monday.
Chipmaker Nvidia fell 3.7% and Microsoft fell 2.6%. The broader technology
sector has also been contending with a global chip and parts shortage because
of the virus pandemic and that could get more severe as a power crunch in some
parts of China shuts down factories.
Communications companies also weighed down the market. Facebook fell 3.3%
and Google's parent company, Alphabet, fell 3.7%.
Energy stocks rose. Exxon Mobil rose 1.6% and Cabot Oil & Gas rose 1.3%.
Another lingering market worry resonating from China is the possible
collapse of one of China's biggest real estate developers. Evergrande Group is
struggling to avoid a default on billions of dollars of debt.
Markets in Asia were mixed while markets in Europe fell.
Investors have been dealing with a choppy market in September as they try to
gauge how the economic recovery will progress and how it will impact various
industries. The S&P 500 is down 3.3% so far in September and is headed for its
first monthly loss since January.
COVID-19 remains a lingering threat and is still taking its toll on
businesses and consumers. Economic data on consumer spending and the employment
market has been mixed. Companies are warning that supply chain problems and
higher prices could crimp sales and profits.