Volatility gripped financial markets as a selloff in some of the worldâs largest technology companies dragged down stocks.
The S&P 500 came off session lows amid gains in commodity, financial and industrial shares, but still headed toward its biggest drop since mid March. The Nasdaq 100 underperformed as megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. sank. The dollar briefly extended its advance after Treasury Secretary Janet Yellen said interest rates may have to rise modestly to prevent the economy from overheating.
Her remarks added to an already heated debate on whether government spending could spur a surge in inflation, crashing into a stock market showing signs of jitters over elevated valuations. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain much traction despite blowout earnings.
Stocks sSlump as volatility jumps amid tech selloff - Article
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Volatility gripped financial markets as a selloff in some of the worldâs largest technology companies dragged down stocks.
Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid a rebound in commodity, financial and industrial shares. The dollar advanced after Treasury Secretary Janet Yellen said interest rates may have to rise modestly at one point to prevent the economy from overheating.
Her remarks added to the debate on whether government spending could boost inflation at a time when stock valuations hovered near the highest in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain traction despite stellar earnings. The mere suggestion the Federal Reserve may have to lift rates was enough for investors to head for the exits after the latest rally sparked speculation of a bubble.
May 05 2021, 3:31 AM
May 04 2021, 2:59 AM
May 05 2021, 3:31 AM
(Bloomberg) Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.
(Bloomberg) Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.
Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid gains in commodity, financial and industrial shares. Treasury Secretary Janet Yellen rattled markets with a comment economists regarded as self evident that rates will likely rise as government spending ramps up and the economy responds with faster growth. Later in the day, Yellen said she wasnât predicting or recommending rate hikes.
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Shares rose in Hong Kong, Australia and South Korea.
By Andreea Papuc, Bloomberg
4 May 2021 09:51
Image: Qilai Shen/Bloomberg
European stocks rose on Tuesday as optimism mounted about the regionâs reopening plans, while US equity futures slipped following weakness among technology giants on Wall Street. The dollar rallied.
The Stoxx 600 Index climbed 0.2%, boosted by travel and leisure firms after the European Union announced plans to reopen its borders to tourists after months of pandemic-induced restrictions. Miners advanced as a gauge of commodity prices sits at the highest level since 2012. Shares rose in Hong Kong, Australia and South Korea.
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