Nasdaq ends sharply down; rising Treasury yields sink Big Tech

[superadmin]

Wall Street ended sharply lower on Monday as investors dumped Big Tech and other growth stocks in the face of rising Treasury yields, while concerns about a potential U.S. government debt default also fed caution.

Apple, Microsoft, Amazon and Alphabet, the U.S. stock market's four most valuable companies, each dropped more than 2 percent.

Facebook, the fifth most valuable company, slumped almost 5 percent after its app and its photo-sharing platform Instagram were down for thousands of users, according to outage tracking website Downdetector.com.

"For Big Tech, this is a short- to medium-term thing, part of a correction process. Rates were clearly too low, due in large part to central bank policies, and now as investors anticipate those policies getting clawed back, rates are moving closer to their real value," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.


- More -