NEW YORK (dpa-AFX) – The rapid rise in yields on the bond market weighed heavily on US technology stocks in particular on Thursday. Higher interest rates are causing problems for these shares, some of which are very highly valued, because they increase the financing costs of the strongly growth-oriented tech companies. In general, alternatives to equity investments could become more attractive if the current yield trend continues.
The technology-heavy Nasdaq 100 fell 2.01 percent to 12,936.52 points. The market-wide S&P 500, which contains many tech values, lost 0.74 percent to 3944.69 points. The leading index Dow Jones Industrial had made the leap to a record high in early trading and was recently still marginally up at 33,023.82 points.
For some time now, bond yields have benefited from the trillion dollar economic stimulus from the US government and the progress made in the vaccination campaign against the coronavirus. On Wednesday, the US Federal Reserve continued to react calmly to developments on the bond market. The current very loose monetary policy is still considered appropriate./la/fba
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