Wall Street was hit by falling tech stocks
© Reuters. FILE PHOTO: The facade of the New York Stock Exchange (NYSE) can be seen in New York City, United States on May 4, 2021. REUTERS / Brendan McDermid / File Photo
From Echo Wang
(Reuters) – Technology stocks lower Wall Street’s major indices on Monday, with the index falling about 1% as signs of mounting inflationary pressures raised concerns over monetary tightening.
Six of the 11 major S&P sectors declined, with technology loss falling 1.3%. Apple Inc (NASDAQ 🙂 and Microsoft Corp. (NASDAQ 🙂 fell more than 1% each and weighed the most on the benchmark and the Nasdaq.
The S&P 500 posted its biggest one-day jump in more than a month on Friday as investors resumed stocks falling after a retreat earlier in the week amid inflation concerns and an earlier-than-expected tightening by the US Federal Reserve.
“What is causing the decline, surprisingly, is concerns about inflation and interest rates,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“As a result, the growth group, especially tech and consumer discretionary, is weak, while some of the more value groups do slightly better.”
At 2:53 p.m. ET, it fell 79.86 points, or 0.23%, to 34,302.27; the S&P 500 lost 17.38 points, or 0.42%, to 4,156.47; and the Nasdaq Composite fell 112.05 points, or 0.83%, to 13,317.93.
This week’s earnings will be reviewed for evidence of whether rising prices had an impact on consumer demand and whether retailers can maintain their strong earnings momentum.
Walmart (NYSE 🙂 Inc, hardware store chain Home Depot Inc (NYSE 🙂 and department store operator Macy’s Inc (NYSE 🙂 will join on Tuesday aim Corp (NYSE 🙂 Ralph Lauren (NYSE 🙂 and TJX (NYSE 🙂 Cos due later in the week.
According to Refinitiv IBES, its fastest pace in eleven years, the overall bottom line for the S&P 500 companies is likely to have increased 50.6% year over year.
AT&T Inc (NYSE :), owners of studios HBO and Warner Bros, and Discovery (NASDAQ 🙂 Inc, home to lifestyle television networks like HGTV and TLC, announced Monday that they will combine their content assets to create a stand-alone global entertainment media business. AT&T stock was down 0.4% while Discovery was down 4.7%.
Cryptocurrency-related stocks like Marathon Digital, Riot Blockchain (NASDAQ 🙂 and Coinbase fell between 6% and 10% as Bitcoin swung in volatile trading after Elon Musk, head of Tesla (NASDAQ 🙂 Inc, tweeted about the automaker’s bitcoin holdings would have.
One of the most active stocks on the NYSE was AT&T, down 0.9% to $ 31.94; AMC Entertainment (NYSE 🙂 Holdings Inc, up 7.2% at $ 13.92; and Ford Motor (NYSE 🙂 Co, up 1.9% at $ 12.07.
The most active issues on Nasdaq included Aerpio Pharmaceuticals (NASDAQ 🙂 Inc, up 37.1% to $ 1.59; Sundial Growers (NASDAQ :), up 4.5% at 74 cents; and Castor Maritime by 10.9% to 44 cents.
Progressive issues outpaced declines on the NYSE by a ratio of 1.02 to 1. On Nasdaq, a ratio of 1.20 to 1 favored declines.
The S&P 500 posted 34 new 52-week highs and no new lows. The Nasdaq Composite made 95 new highs and 49 new lows.