Technical weaknesses continue to put pressure on Wall Street

Wall Street’s key indices fell on Tuesday, with rising Treasury yields squeezing key tech stocks, delaying Nasdaq the most, and rising bank and energy stocks helped curb widespread market losses.

The S & P 500 Energy Index rose 2.7% as oil prices rose after the United States and other consuming countries began to release oil from their reserves to cool the market.

S & P Bank’s sub-index rose 1.3%, expanding Monday’s rise. Goldman Sachs, JP Morgan and Bank of America each rose more than 1% as investors raised expectations for a rate hike next year after Jerome Powell was appointed as Fed chair for the second time. semester.

However, the S & P tech sector fell 0.9% as higher yields made the high-growth sector less attractive.

Rick Meckler, a partner at Cherry Lane Investments in New Jersey, NJ, said:

“But the result is positive for bank stocks, but not for other stock markets, especially technologies that trade at very high price-earnings ratios.”

According to a survey by IHS Markit, business activities in the United States in November slowed moderately due to labor shortages and delays in raw materials, but remained comfortable in the expansion area due to the strength of the manufacturing industry.

The Nasdaq and S & P 500 fell from record highs on Monday as Powell’s nomination prompted a volatile session.

The CBOE volatility index temporarily rose to a high of more than a month early on Tuesday. The market can be highly volatile as Thanksgiving holidays are expected to reduce trading volumes this week.

At 10:27 am ET, the Dow Jones Industrial Average was 35,593.07, down 26.18 points (0.07%), and the S & P 500 was 4,670.86, down 12.08 points (0.26%). The Nasdaq Composite fell 110.84 points (0.70%) to 15,743.92.

Among other stocks, Zoom Video Communications Inc. was 16.9% after third-quarter earnings growth fell to 35% as demand for video conferencing tools eased from last year’s pandemic-fueled highs. It has fallen.

XPeng Inc. was up 10.1% due to the bright performance and outlook of electric vehicle manufacturers in the third quarter. Tesla Inc. And most other EV makers, including Lucid Group, went bankrupt.

Best Buy Co. Inc. fell 15.9% after electronics retailers predicted lower-than-expected sales in the fourth quarter due to supply chain issues.

Chip makers Micron Technology and Western Digital Corp. outperformed their peers, rising 2.4% and 6.6%, respectively, after Mizuho upgraded his stake from “neutral” to “buy.”

The ratio of issues is 1.02 to 1 for NYSE and 1.28 to 1 for Nasdaq, which is higher than the number of issues ahead of schedule.

The S & P index recorded five new 52-week highs and four new lows, and Nasdaq recorded 27 new highs and 240 new lows.

By Ambar Warrick and Devik Jain