Stocks Tumble as Tech Sector Takes a Hit and US Yields Rise: Yahoo Finance Markets Wrap

In a tumultuous day for the stock market, tech stocks were hit hard as US Treasury yields climbed once again, sending shockwaves through markets worldwide.

The tech-heavy Nasdaq Composite fell over 2%, with giants like Apple, Amazon, and Microsoft all experiencing significant losses. The S&P 500 also saw a decline, while the Dow Jones Industrial Average managed to stay in positive territory.

Investors were spooked by the rising US Treasury yields, which have been climbing steadily in recent weeks. The 10-year Treasury yield reached 1.62% on Thursday, its highest level in over a year. This increase in yields has raised concerns about inflation and the potential for higher interest rates, which could impact the valuation of high-growth tech stocks.

The sell-off in tech stocks comes after a period of strong gains for the sector, which has been a major driver of the market’s rally since the pandemic-induced crash last year. Many investors have flocked to tech stocks as a safe haven during the uncertainty of the pandemic, but the recent rise in yields has prompted a reassessment of the sector’s prospects.

Despite the turmoil in the tech sector, some analysts remain optimistic about the broader market. The reopening of the economy, along with the passage of a massive stimulus package by Congress, has bolstered hopes for a strong economic recovery in the coming months.

Overall, the market remains highly volatile, with investors closely monitoring developments in the bond market and the Federal Reserve’s response to rising yields. The coming days will be crucial in determining the direction of the market, as investors grapple with the implications of a potential shift in interest rates.