Wall Street drops from record levels as tech stocks dip

Wall Street drops from record levels as tech stocks dip

US shares came off a week of gains as investors sought cues from first-quarter earnings reports to justify high valuations, technology stocks underperformed as the benchmark 10-year Treasury yield crept back above 1.6%, and the Nasdaq fell nearly 1%.

Tesla Inc shares fell 3.4% after a fatal car crash. It was the largest drag on the S&P 500 and Nasdaq Composite Index. An 8.4% drop over the weekend in bitcoin, by which Tesla has funding, additionally weighed on its share value.

The tech-heavy S&P 500 was mostly lower, with Microsoft Corp, Amazon.com Inc, and Nvidia Corp additionally weighing on the benchmark index as analysts await outcomes this week and subsequent that kind the majority of earnings season.

Real estate was the only one of the 11 S&P 500 sectors to post gains.

Nvidia fell 3.5% after the UK government said it would look into the national security implications of Nvidia’s purchase of British chip designer ARM Holdings.

Coca-Cola rose 0.6% after the consumer giant reported better-than-expected earnings and revenue. The company also said demand in March has returned to pre-pandemic levels.

IBM Corp, another blue-chip company, slipped about 0.4% ahead of its results after market close.

“The market has had a huge jump to the upside so it needs to take a little bit of rest,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The Dow Jones Industrial Average fell 123.04 points, or 0.36%, to 34,077.63. The S&P 500 lost 22.21 points, or 0.53%, at 4,163.26; while the Nasdaq Composite dropped 137.58 points, or 0.98%, to 13,914.77.

Damon Harrison
Market Analyst, IPG Group