Wall Street stocks closed sharply lower on Tuesday as a result of poor results reported by Goldman Sachs and the decline in technology companies’ securities, while US Treasury yields rose, Reuters reports.
The Dow Jones Industrial Index fell by 1.41%, the S&P 500 by 1.64%, and the Nasdaq by 2.24%, informs News.ro.
Goldman Sachs shares fell 7.3% after the investment bank reported quarterly financial results below analysts’ expectations due to weak trading.
The financial component of the S&P 500 index had the weakest evolution, with a decline of 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%. The decline in the shares of large-cap companies, including Microsoft, Apple and Amazon, had the largest negative impact 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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