S&P 500 ends below 4,000 for the first time since March 2021; Growth stocks lead to decline

  • Nasdaq leads the decline
  • Twitter falls as short seller Hindenburg reports a risk to Musk’s deal
  • Indices: Dow Jones 2%, S&P 500 down 3.2%, Nasdaq 4.3%.

NEW YORK (Reuters) – The Standard & Poor’s 500 Index closed below 4,000 for the first time since March 2021 and the Nasdaq fell more than 4% on Monday in a sell-off led by massive growth stocks as investors grew increasingly concerned about a surge in interest. rates.

The Nasdaq closed at its lowest level since November 2020. Apple (AAPL.O) Shares fell 3.3% and were the biggest heavyweights on the Nasdaq and S&P 500.

Investors are concerned about how strong the Federal Reserve will have to tame inflation. Last week, the US central bank raised interest rates by 50 basis points.

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The benchmark 10-year US Treasury yield reached its highest level since November 2018 early in the session.

“Markets are absorbing the beginning of a return to a more normal monetary policy environment,” said Christina Huber, chief global market strategist at Invesco in New York.

“Moving aggressively (on prices) raises the specter of a recession, especially with all these complications – high inflation, Russia’s invasion of Ukraine, supply chain disruptions linked to COVID,” she said.

Investors were also concerned about the economic slowdown in China after the recent surge in coronavirus cases.

Dow Jones Industrial Average (.DJI) It fell 653.67 points, or 1.99%, to 32,245.7 points, the Standard & Poor’s 500 . (.SPX) It lost 132.1 points, or 3.20%, to 3,991.24 points, and the Nasdaq Composite (nineteenth) It fell 521.41 points, or 4.29%, to 11623.25 points.

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Among the hardest hit in the recent sell-off were technology and growth stocks, whose valuations depend more on future cash flows.

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

Twitter Inc (TWTR.N) Shares fell more than 3% as Hindenburg Research took a short position in the social media company’s shares, saying the company’s $44 billion deal to sell itself to Elon Musk risks being repriced lower. Read more

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Additional reporting by Devik Jain and Amruta Khandekar in Bengaluru. Editing by Shunak Dasgupta, Anil de Silva and Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.

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