Wednesday, January 19, 2022, 8:11 p.m.
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2397 readings
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Wall Street stocks closed sharply lower on Tuesday following weak bank results Goldman Sachs and the decline in technology companies’ securities, while US Treasury yields have risen, Reuters reports.
The Dow Jones Industrial Average fell 1.41%, the S&P 500 1.64% and the Nasdaq 2.24%.
Goldman Sachs shares fell 7.3% after the investment bank reported quarterly financial results below analysts’ expectations due to weak trading.
compound financialThe S&P 500 index had the weakest performance, down 2.4%.
The yield on 10-year Treasury bonds has reached its highest level in two years, and the yield on 2-year bonds has exceeded 1%, with traders preparing for the Federal Reserve to be more aggressive in fighting inflation through policy its monetary.
Strong growth in Treasury yields in 2022 has particularly affected growth in technology and other growth-prone companies, whose capital flows are more affected by rising yields.
All 11 major S&P 500 sectors were traded down, of which the technology sector declined 2.1%. Decrease in the shares of some companies with very high capitalization, among which Microsoft, Apple and Amazon, had the biggest negative influence on the S&P 500.
The Nasdaq index fell by up to 9.5% from a record high on November 19. To confirm a correction, the Nasdaq decline should be above 10%.
Shares of Activision, on the other hand, rose 25 percent after Microsoft announced a $ 68.7 billion takeover of the video game maker. Microsoft shares fell 2%.
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