March 18, 2021
21:37
–
High interest rates took another bite out of the valuation of technology stocks. The Nasdaq fell 3 percent on Thursday.
–
It stormed again on the American stock exchange on Thursday. The broad degree lake S & P500 lost 1.5 percent at the end, while the technology exchange Nasdaq even got a hit of 3 percent. The big tech companies were beaten. Apple
fell 3.4 percent, Microsoft
was down 2.7 percent, Alphabet
was hit 2.9 percent, Amazon
had to swallow a loss of 3.4 percent, Facebook
dropped 1.9 percent and Tesla
even thundered 6.9 percent lower.
–
Volkswagen the new Tesla?
–
–
Tesla’s decline may have to do with news from earlier this week. Because Volkswagen
this week firmly opened the attack on the electric car maker by announcing itself batteries for electric cars to start producing. Volkswagen is chasing Tesla with that (see video).
–
More generally, the ever-rising US ten-year interest rates tech stocks are playing tricks on. After the US central bank (Fed) Wednesday said not to worry about rising interest rates, the ten-year interest rate will rise another 8 basis points to 1.72 percent on Thursday. That is the highest level since January 2020. Interest rates are climbing due to rising inflation and growth expectations for the US economy. Their growth is the result of the US President Joe Biden’s $ 1,900 billion stimulus package.
–
–
