Nasdaq Sinks to Two-Month Low as Bond Yields Jump: Markets Wrap
- Treasuries pricing highest inflation expectations since 2008
- Tech selloff overshadows gains in banks and energy producers
Watch: Rajeev de Mello, development committee chair at the Investment Management Association of Singapore, discusses the current state of markets and where he’s finding opportunity.
Daybreak: Asia. (Source: Bloomberg)The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as investors grappled with concern over stretched valuations.
A selloff in high-flying giants such as Apple Inc. and Amazon.com Inc. outweighed gains in banks and energy producers. The Nasdaq 100 slumped to a two-month low, bringing its losses from a February peak to about 8%. The S&P 500 extended its slide into a second day, while the Dow Jones Industrial Average outperformed. Benchmark U.S. government yields approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008. Traders also assessed data pointing to a slow and uneven economic recovery from the depths of the pandemic.