Nasdaq sinks more than 2.5 percent 100 percent as technology deepens Financial Market News

The high-tech Nasdaq led to losses on Wall Street amid growing fears that the U.S. Federal Reserve will raise interest rates.

Technology companies brought in stock losses amid widespread calls by Federal Reserve officials to raise rates so that inflation does not take root in the U.S. economy.

Traders also assessed that a split in the Supreme Court had blocked the focus of President Joe Biden’s push to get more people vaccinated, ignoring the rule that 80 million workers had to be shot or tested regularly. The Nasdaq 100 sank more than 2.5%, driven by losses from Microsoft Corp. and Tesla Inc. Chipmakers eliminated profits driven by Taiwan Semiconductor Manufacturing Co.’s growth projections. Boeing Co. joined Bloomberg News when it announced that the 737 Max will begin commercial flights in China as soon as this month.

Fed Governor Lael Brainard said officials could raise rates before March to ensure generational price pressures are under control. Fed Bank of Philadelphia President Patrick Harker is in favor of a March 2022 and three-quarters increase for March 2022. Charles Evans, his Chicago counterpart, who sees a similar rise this year, said he could not judge the probability of the first rise. within two months. Richmond Fed Chairman Thomas Barkin said officials will be in a position to begin normalizing rates at a March meeting if circumstances allow.

“We are in a position that has been positive for initiatives, perhaps moving to neutral or negative, and while there are still few alternatives, the stock market is expected to grow further in the coming months as we look at the data. Shake and how the Fed reacts.” , said Sarah Hunt, portfolio manager at Alpine Woods Capital Investors.

Rising rates – the result of strong economic growth – could push investors into stocks that are more cyclical and offer near-term cash flows. This allows growth rates to be desired for buyers. The long-term profit potential of relatively expensive technology companies may be less attractive among high inflation.

“Technology is a classic example of an area where stocks have benefited from falling rates,” said Kara Murphy, investment director at Kestra Investment Management. “As rate expectations rise in the future, then it makes sense that this would be the area that would hurt the most.”

Prices paid to U.S. producers slowed in December as two main causes of inflation in 2021 – food and energy – fell from a month earlier, as they had recently rested on the upward trend. At the same time, producers continued to face price shortages last year due to a lack of materials, limited labor supply and continued transportation costs.

Morgan Stanley customers are expected to outperform financial stocks this year, according to a survey conducted at this week’s annual conference. The survey shows that 45% of respondents are confident that the industry will perform at its best in 2022. That’s the largest vote in the sector since 2015, the company said in a statement on Thursday.

Here are some of the highlights of this week’s event:

• Bank of Korea policy decision and information on Friday.
• Wells Fargo, Citigroup, JPMorgan will announce their earnings on Friday.
• U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday.
• John Williams, president of the New York Faith, speaks on Friday.

For more market research, read our MLIV blog.

Some of the major market movements:

Stocks

• The S&P 500 fell 1.4% from 4:00 p.m. in New York
• The Nasdaq 100 fell 2.6%
• The Dow Jones Industrial Average fell 0.5%
• The MSCI World index is down 1%

Coins

• The Bloomberg Dollar Spot Index changed little
• The euro changed slightly to $ 1.1452
• The British pound traded slightly at $ 1.3705
• The Japanese yen rose 0.4% to $ 114.14 per dollar

Links

• 10-year Treasury yields fell four points to 1.70%.
• Germany’s 10-year yield fell three percentage points to 0.09%.
• Britain’s 10-year yield fell three basis points to 1.11%.

Goods

• West Texas Intermediate gross fell 1.4% to $ 81.46 a barrel
• Gold futures fell 0.3% to $ 1,821.20 an ounce