The bond markets seemed to have returned somewhat in recent days, but interest rates rose sharply again on Wednesday. And this by 6 basis points to 1.46% for 10-year government bonds. Highly-valued technology stocks are particularly affected, as they lower their future profits.
This is reflected in the stock market indicators. While the Dow Jones index limited the loss to 0.4%, the Nasdaq index closed 2.7% lower.
The report from salary slip processor ADP, sent at half past two, also throws a spanner in the works. It shows that job growth last month was 117,000, significantly less than the approximately 175,000 economists foreseen on average.
Tesla fell 4.8%, despite a target increase by Swiss bank UBS to $ 725. On Tuesday, after a minus of 4.5%, the price fell below $ 700 for the first time this year, after news that Tesla’s share of the European electric car market shrank in January.
Zoom went down another 8.4%. On Tuesday, the company behind the video conferencing service already lost 9%, despite better than expected figures for the past year. Investors wonder whether the valuation has not risen too high, considering that growth is likely to slow sharply after the corona pandemic.
General Electric made a significant positive contribution to the Dow Jones with a plus of 3.7%. The industry conglomerate benefited from a positive report and a target increase by UBS.
ExxonMobil and Chevron also contributed with gains of 0.9% and 1.3% respectively in response to rising oil prices. Countries affiliated with the OPEC oil cartel and its allies are expected to decide on Thursday not to increase production for the time being. By limiting production, the countries want to support oil prices. ExxonMobil announced its intention to reduce its workforce in Singapore, home to the largest oil refining and petrochemical complex, by approximately 7%. This because of “unprecedented market conditions” as a result of the corona pandemic.
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Tech stocks in the US plummeting again | Financial
Source link Tech stocks in the US plummeting again | Financial