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Wednesday, September 28, 2022

Wall Street takes on growth concerns dragging tech companies down

Por Devik Jain y Ankika Biswas

September 22 – Wall Street’s main indexes fell for a third straight session on Thursday as investors feared the US Federal Reserve’s aggressive approach to rein in inflation could trigger a recession.

* Ten of 11 major S&P sectors were lower in early trade led by industry and consumer discretionary stocks.

* On the S&P 500 and Nasdaq, shares of large-cap growth and technology companies including Apple Inc., Amazon.com Inc., Tesla Inc. and Nvidia Corp. fell between 1.0% and 3.6% when benchmark US Treasury yields hit an 11-year high. level reached. ,

* Rising returns weigh heavily on the valuation of the tech sector, which depends on high future earnings.

* The technology sector of the S&P 500 is down more than 27% so far this year, while the S&P 500 index is down 21%.

* “Interest rate hikes tomorrow (Wednesday) and a more bullish Fed tone will weigh on stocks overall and are likely to be higher on rate-sensitive sectors,” said Sam Stovall, chief strategist at Investing CFR research.

* “I certainly see the market testing June lows and there is a high probability of new lows, as indicated by an increase in the two-year yield, and inversion of the 2-year and 10-year yield curves.” Is.”

* The S&P 500 is now down 3.3% from its mid-June low, the weakest point of the year.

* The US central bank on Wednesday raised interest rates by 75 basis points and indicated that its policy rate would peak at 4.4% by the end of the year and 4.6% by the end of 2023, a steady and lower rate than the markets. It was a long trajectory. ,

The Dow Jones Industrial Average was down 154.91 points, or 0.51%, at 30,028.87, while the S&P 500 was down 29.33 points, or 0.77%, at 3,760.60. The Nasdaq Composite fell 126.41 points, or 1.13%, to 11,093.79.

World Nation News Desk
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