Wall Street Tumbles As Yield Spike Hits Tech Banks

After a Goldman miss and a yield spike, tech banks on Wall Street are on the verge of a meltdown. The market has been in free fall for the past several months, with the New York Stock Exchange (NYSE) crashing nearly 10% on Monday. In response, investors are dumping their stocks on other exchanges. Listed companies on the NYSE have a combined market value of US$30.1 trillion, and the NASDAQ is the world’s largest stock exchange.

After Goldman Sachs’ report, financial stocks are taking a beating. The firm missed its quarterly profit forecast, pushing its stock down 7.3%. The S&P 500’s financial sector was the worst performing sector. Meanwhile, benchmark U.S. Treasury yields soared to two-year highs and topped 1%, as traders braced for more aggressive action by the Federal Reserve.

Wall Street Tumbles As Yield Spike Hits Tech Banks

The news that Goldman missed earnings weighed on the financials, and the sell-off in tech stocks followed. However, the sell-off in technology shares did not stop at the bank. In fact, after Goldman’s miss, the entire technology sector dragged the financials sector down. As a result, benchmark U.S. Treasury yields hit two-year highs, as traders braced for aggressive action by the Federal Reserve.

The Dow tumbles more than 700 points, posting a record-low. Oil sinks to an 18-year low, boosting the S&P 500 and Dow. In addition, oil prices slump a second consecutive day as the U.S. Congress delays a production cut. The 30 year Treasury yield hits an all-time low of 1.89% on 21 February.

As the market falls, the Dow Jones drops over 700 points. The S&P 500 continues to rise despite concerns over inflation. Earlier this week, the Labor Department reported that initial unemployment benefits claims dropped by a half-million to 498,000. The number is down from 590,000 the previous week. Although the Fed did not mention the COVID-19 economic fallout, Li cites the rising 10-year Treasury yield as a reason for the drop in the stock market.

Also Read:  Stocks that make the most premarket moves include Perrigo, Southwest, Canada Goose, Wendy’s and Wendy’s.

As the stock market fell, oil prices plunged as well. After the Goldman miss, Europe stocks slumped 12% and the Dow has fallen more than 5% for the past three days. On Thursday, Indonesia announced tax relief for its manufacturing industry. On Friday, the 10-year Treasury yield hit a record low of 1.12%, while the two-year rate fell to a seven-year low of 0.9%.

By Luciana Rojas

Luciana Rojas is a stock market expert. She has been entrepreneur since she was just 16 years old. She also shares her experience as well as Stock Market News worthy Pieces on Daily Reuters. Lately she has been working on NFTs so she really helps the Daily Reuters audience to learn about NFTs.

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