AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)
Markets

Wall Street extends losses as inflation fear lingers

  • Tech-focused stocks rebound.
  • Energy stocks slip as oil prices slide.
  • Banks stocks drop as US bond yields ease.
  • Indexes: Dow down 1.24%, S&P dips 0.67%, Nasdaq down 0.32%.
Published February 26, 2021

Wall Street's main indexes extended losses on Friday as fears of a potential rise in inflation kept US bond yields around one-year high, while tech stocks clawed back some losses.

Shares of Amazon.com Inc, Microsoft Corp and Alphabet Inc edged up between 0.4% and 1%, but were headed for their worst week in months.

The benchmark 10-year US Treasury yield eased to 1.478% after jumping 1.614% overnight, roiling stock markets. Wall Street's fear gauge hovered at a one-month high.

"If rates continue to move that quickly, the markets wouldn't like that," said Eric Diton, President and Managing Director at The Wealth Alliance in New York.

"I don't see reasons for panic out there. This is simply a normal overdue pullback."

The major averages were knocked off their all-time highs last week after a sharp rise in US Treasury yields triggered a selloff in some of the mega-cap technology stocks.

Tech stocks are particularly sensitive to rising yields because their value rests heavily on future earnings, which are discounted more deeply when bond returns go up.

The Dow is poised for its best month since November 2020 as investors bought into cyclical companies set to benefit from an economic reopening, while the Nasdaq remains on track to wipe out nearly all of its gains for the month.

Financials and energy shares, the best performing S&P sectors this month, slipped about 0.2% and 1%. Technology stocks rose 0.6% and semiconductor stocks advanced about 1%.

At 10:27 a.m. EST the Dow Jones Industrial Average fell 388.66 points, or 1.24% , to 31,013.35, the S&P 500 lost 25.56 points, or 0.67 %, to 3,803.78 and the Nasdaq Composite lost 41.33 points, or 0.32 %, to 13,078.10.

Latest data showed US consumer spending increased by the most in seven months in January but price pressures remained muted.

Stimulus will be back in focus as the Democratic-controlled US House of Representatives aims to pass President Joe Biden's $1.9 trillion coronavirus aid bill on Friday in what would be the first major legislative victory of his presidency.

GameStop Corp jumped 11% as retail investors pushed up the stock in a renewed rally that could see it clock its second best week.

Salesforce.com Inc slipped about 1.3% as the online software company forecast full-year profit below market expectations.

Declining issues outnumbered advancers by a 2.8-to-1 ratio on the NYSE and by a 3.6-to-1 ratio on the Nasdaq.

The S&P 500 posted one new 52-week high and one new low while the Nasdaq recorded 26 new highs and 77 new lows.

Comments

Comments are closed.