Tech Plummets and Drags Down Markets…..
U.S. stocks kicked off the week lower, as issues within the Information Technology sector came under heavy pressure and weighed on market indices. The economic calendar was quiet today, as the markets continued to evaluate April’s disappointing employment report from last week and began to look ahead to a host of inflation reports later in the week. The inflation reports will be of particular interest to investors as uncertainty remains elevated regarding when the Fed could begin to taper its asset purchases. Earnings continued to roll in, as Tyson Foods and Marriott International saw some pressure following their results. Crude oil and gas prices were little changed, after a cybersecurity attack over the weekend closed a key pipeline in the U.S. Meanwhile, Treasuries were lower and rates across the curve rose ahead of the mid-week inflation data, and the U.S. dollar was close to flat. Gold traded to the upside. Asia closed mostly higher, while Europe finished mixed.
The Dow Jones Industrial Average fell 35 points (0.1%) to 34,743, the S&P 500 Index decreased 44 points (1.0%) to 4,188, and the Nasdaq Composite declined 350 points (2.6%) to 13,402. In heavy volume, 998 million shares were traded on the NYSE and 4.7 billion shares changed hands on the Nasdaq. WTI crude oil ticked $0.02 higher to $64.92 per barrel. Elsewhere, the Bloomberg gold spot price gained $6.84 to $1,838.08 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was little changed at 90.22.
Treasuries were lower with the economic calendar void of any major releases today, as the yield on the 2-year note increased 1 basis point to 0.15%, the yield on the 10-year note rose 2 bps to 1.60% and the 30-year bond rate moved 4 bps higher to 2.32%.
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