Stocks fall as surging bond yields slam tech shares
STORY: Tech shares dragged Wall Street sharply lower on Monday as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data expected on Tuesday.
The Dow ended 1.19% lower. The S&P 500 fell 1.69% and the tech-heavy Nasdaq lost 2.18%.
Robert Schein is chief investment officer at Blanke Schein Wealth Management.
"The yield curve is in front and center right now, as markets are seeing the 10-year Treasury, again, well above expectations that 2.77(%), highest level we've seen since 2019. So, what that really is translating into, we're seeing equity markets, specifically the Nasdaq markets or technology, selling off... The reality is is that the yield curve inversion is really telling us or telling the Fed that they have to act sooner than later because they are way behind the yield curve. The yield curve is actually moving markets and the Federal Reserve's talking about talking about it. But it's maybe too little too late right now. They've got to get to work."
One of the few tech stocks to rise on Monday was Twitter, after its biggest shareholder, Elon Musk, rejected the social media company's offer to join its board of directors, leading some analysts to believe he may increase his stake.
As for the car company he runs, data showed that sales of Tesla vehicles plunged in China last month due to the country's health restrictions. Shares fell 4.83%.
And the newest streaming giant, Warner Bros Discovery, began trading for the first time on Monday, after AT&T spun off its media wing in a $43 billion merger with Discovery.
Shares ended higher after spending most of the day in the red, while shares of AT&T climbed 7.74%.
