Business

The S&P 500 ends below 4000 for the first time since March 2021; growth shares lead to decline




  • Nasdaq leads decline
  • Twitter falls when short seller Hindenburg flags the risk of the Musk deal
  • Indices: Dow down 2%, S&P 500 down 3.2%, Nasdaq down 4.3%

NEW YORK, May 9 (Reuters) – The S&P 500 ended below 4,000 for the first time since March 2021 and the Nasdaq fell more than 4% on Monday in a sale led by mega-cap growth stocks as investors became more concerned about rising interest rates.

Nasdaq closed at its lowest level since November 2020. Apple (AAPL.O) shares fell 3.3% and were the largest weight on the Nasdaq and S&P 500.

Investors are worried about how aggressive the Federal Reserve must be to tame inflation. The US Federal Reserve raised interest rates by 50 basis points last week.

Sign up now for FREE unlimited access to Reuters.com

Benchmark 10-year US government interest rates reached their highest level since November 2018 early in the session.

“Markets are digesting the start of a return to a more normal monetary policy environment,” said Kristina Hooper, head of global marketing strategist at Invesco in New York.

“Moving more aggressively (on prices) increases the spectrum of a recession, especially with all these complications – high inflation, Russia’s invasion of Ukraine, covid-related supply chain disruptions,” she said.

Investors have also been concerned about an economic downturn in China following a recent increase in coronavirus cases.

The Dow Jones Industrial Average (.DJI) fell 653.67 points, or 1.99%, to 32,245.7, the S&P 500 (.SPX) lost 132.1 points, or 3.20%, to 3,991.24 and Nasdaq Composite (.521 or 4,521 points). 4.29% to 11,623.25.

Among the hardest hit in recent sales have been technology and growth stocks, whose valuations are more dependent on future cash flows.

The energy sector (.SPNY) sector fell 8.3% as oil prices fell.

Twitter Inc (TWTR.N) stock fell more than 3% when Hindenburg Research took a brief stance on the company on social media, saying the company’s $ 44 billion deal to sell itself to Elon Musk has a significant risk of get lower price. read more

Sign up now for FREE unlimited access to Reuters.com

Additional reporting from Devik Jain and Amruta Khandekar in Bengaluru; Edited by Shounak Dasgupta, Anil D’Silva and Aurora Ellis

Our standards: Thomson Reuters Trust Principles.



Source link

Back to top button