NEW YORK (dpa-AFX) – Fear of inflation tore down US technology stocks in particular on Thursday. But standard values also suffered considerable losses. The trigger for the sharp downward movement was the rapid rise in yields on the bond market. The interest rate for ten-year US government bonds climbed over 1.5 percent, the highest level since February 2020. Higher interest rates put stocks in a worse light than fixed-income securities.
The US leading index Dow Jones Industrial lost 1.75 percent to 31,402.01 points after climbing over 32,000 points for the first time on Wednesday. The market-wide S&P 500 fell by 2.45 percent to 3829.34 points and the technology-heavy Nasdaq 100 dropped by 3.56 percent to 12,828.31 points. It was the largest daily percentage loss since October last year.
Investors are more and more convinced that inflation will increase and cause the central bank to tighten its monetary policy, commented analyst Craig Erlam of the trading house Oanda Europe. The significantly higher yields on the bond market already reflect this concern. Meanwhile, technology stocks are particularly suffering from rising interest rates, as this increases their financing costs. In addition, tech stocks had risen above average in the past few months, and investors are now increasingly cashing in./la/he
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