The Soaring U.S. Bond Yields Caused Panic
The US stock market plummeted on the 25th. Nasdaq index, which is dominated by technology stocks, fell 478 points, and the Philadelphia Semiconductor Index plunged nearly 6%.
According to comprehensive media reports, the 10-year U.S. bond yield surged to a record high of 1.614% in more than a year, prompting investors who are worried about overvaluation to lock in the profits of some strong growth stocks. The advantage of the S&P 500 dividend yield over the benchmark US Treasury yield during the epidemic has disappeared.
S&P 500 technology stocks plunged 3.5%, communications service stocks plunged 2.6%, these sectors will promote the stock market in 2020. The S&P 500 growth stock index was basically flat in February, far underperforming the value stock index, which rose more than 7% due to the market’s optimism about the economic restart after the global epidemic.
Fang stocks closed collectively. Apple, Amazon, Microsoft, Alphabet, Facebook and Netflix fell by 1.2% to 3.6%; Tesla plummeted 8.1%. Earlier media reports said the electric giant told employees , It will temporarily stop some production at the California assembly plant.
Despite the market decline, Game Station (GME) soared 18.6%, breaking the daily limit several times during the session. Prior to this, the company forcibly dismissed Chief Financial Officer Jim Bell and there was news that Game Station intends to add Bitcoin to its balance sheet.
At the close of US stocks today, the Dow Jones Industrial Average closed down 559.85 points or 1.75% to 31402.01 points.
The S&P 500 index closed 96.09 points or 2.45% lower at 3,823.34 points.
The Nasdaq index closed 478.54 points or 3.52% lower at 13,119.43 points.
The Philadelphia Semiconductor Index fell 184.58 points, or 5.80%, to 2,999.16.
The Soaring U.S. Bond Yields Caused Panic - /10