Tech stocks crumble as renewed inflation fears send 10-year yield to new cycle highs
Getty Images / Xinhua News Agency
- Technology stocks crumbled on Thursday as interest rates continued to climb to a new cycle-high.
- The 10-year US Treasury yield hit 1.75%, representing the highest level since January 2020.
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A decline in US stocks on Thursday was led by the Nasdaq 100, which fell nearly 2% following a surge in interest rates.
The 10-year US Treasury yield hit 1.75% on Thursday, representing a new cycle-high for the treasury note. Yields haven't been that high since January 2020, just two months before the COVID-19 pandemic led to widespread lockdowns across the globe.
Investors' inflation fears weren't quelled by Fed Chairman Jerome Powell's speech on Wednesday, as he committed to his resolve in maintaining ultra-low interest rates, as he sees current inflation concerns as transitory.
Here's where US indexes stood at the 9:30 a.m. ET open on Thursday:
- S&P 500: 3,951.06, down 0.58%
- Dow Jones industrial average: 32,990.70 , down 0.07% (24.67 points)
- Nasdaq composite: 13,354.51, down 1.27%
Weekly jobless claims moved higher on Thursday to 770,000, which was higher than economist estimates of 700,000 and also above last week's revised number of 725,000.
AMC Entertainment jumped nearly 5% after the company said 98% of its movie theater locations would be open by this Friday.
Bitcoin moved higher on Thursday and flirted with the $60,000 level as Fed Chairman Jerome Powell's commitment to continue supporting the economy with easy monetary policy fueled inflation concerns, which some investors say bitcoin is a hedge against.
Penny stock trading volume has soared 2,000% in the past year as a surge in retail investors has led to speculative investing in risky trading vehicles.
Oil prices were lower. West Texas Intermediate crude fell as much as 1.9%, to $63.34 per barrel. Brent crude, oil's international benchmark, dropped by 1.8%, to $66.70 per barrel, at intraday lows.
Gold fell as much as 0.35%, to $1,720.90 per ounce.
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