clearn.png
Thursday May 19th, 2022 10:03PM

Technology sector leads stocks lower again on Wall Street

By The Associated Press
Related Articles
  Contact Editor

Stocks fell and bond yields rose Monday, extending the market's pullback last week, as investors shifted holdings in anticipation that the Federal Reserve will raise interest rates this year in its bid to lower inflation.

The selling was broad, though by late afternoon the indexes had come above their lows from earlier in the day. S&P 500 was down 0.7% as of 3:29 p.m. Eastern. The benchmark index had been down 2% in the early going. The Dow Jones Industrial Average fell 312 points, or 0.9%, to 35,914 and the Nasdaq fell 0.8%.

Technology stocks again accounted for a big share of the decline. The sector has been the biggest weight on the market through January and is coming off of its worst week since October 2020. Big technology stocks have an outsized influence on the S&P 500 because of their huge size. Coming into the year, the technology sector represented 29.2% of the S&P 500. Nvidia shed 1.1%.

Wall Street is closely watching the Federal Reserve for clues as to how soon it might raise interest rates. The central bank has already said it will accelerate the reduction of its bond purchases, which have helped keep interest rates low. The market now puts the chances of the Fed raising short-term rates by at least a quarter point in March at around 78%. A month ago, it was about 36%.

Higher interest rates make the stocks of expensive tech companies and other pricey growth companies less attractive to investors, which is why the sector has been slipping while bond yields rise.

The yield on the 10-year Treasury rose to 1.77% from 1.76% late Friday.

Health care was the only sector in the S&P 500 on pace for a gain. Sectors that are considered less risky, including utilities and household goods makers, held up better than the rest of the market.

Elsewhere in the market a mix of deal news and financial updates moved several large stocks.

Take-Two Interactive, maker of “Grand Theft Auto,” plunged 14.9% after announcing a deal to buy Zynga, which makes “Words With Friends” and “Farmville." Zynga jumped 41.2%.

Athletic apparel maker Lululemon Athletica fell 2.3% after warning investors that a surge in virus cases hurt its fourth-quarter financial results. Medical products maker and distributor Cardinal Health fell 6.1% after saying that supply chain problems will hurt profits for its medical segment.

Investors have a busy week of economic reports and corporate earnings.

On Wednesday, the Labor Department will release an update on how inflation is impacting prices with its Consumer Price Index for December. The agency will release give investors details on how inflation is impacting businesses with its Producer Price Index for December on Thursday.

On Friday, Citigroup, JPMorgan Chase and Wells Fargo will report their latest quarterly financial results.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Health Care
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Technology sector leads stocks lower again on Wall Street
Stocks fell broadly in afternoon trading on Wall Street Monday and bond yields continued rising as investors anticipate moves by the Federal Reserve to raise interest rates
12:15PM ( 15 minutes ago )
Hurricane Ida, Europe floods made 2021 costly for disasters
Damage wrought by Hurricane Ida in the U.S. state of Louisiana and the flash floods that hit Europe last summer have helped make 2021 one of the most expensive years for natural disasters
12:15PM ( 15 minutes ago )
Polish senator sues party leader over surveillance remarks
A Polish opposition senator whose phone was hacked with advanced spyware has filed a civil suit against Poland’s ruling party leader
12:12PM ( 17 minutes ago )
Associated Press (AP)
LA cops pull pilot from plane moments before train hits it
Police body-camera video shows a harrowing rescue in California, where a small plane crashed on railroad tracks shortly after takeoff from a suburban Los Angeles airfield
11:31AM ( 58 minutes ago )
Vikings fire GM Rick Spielman, coach Mike Zimmer
The Minnesota Vikings have fired general manager Rick Spielman and coach Mike Zimmer
10:44AM ( 1 hour ago )
Former Biden adviser Symone Sanders to host MSNBC show
MSNBC says it has hired former Biden aide Symone Sanders to host a weekend television show and another on its Peacock streaming service
10:33AM ( 1 hour ago )
AP Business
Global stocks mixed after Wall St falls on rate hike worries
Global stocks are mixed after Wall Street fell on worries the Federal Reserve will raise interest rates as soon as March
4:27AM ( 8 hours ago )
Inflation up, virus down as priorities in US: AP-NORC poll
The pandemic has receded as a top priority in many voters’ minds to start 2022, with the economy and rising worries about inflation overshadowing coronavirus concerns
12:24AM ( 12 hours ago )
Asian stocks mixed after Wall St falls on rate hike worries
Asian stock markets are mixed after Wall Street fell on worries the Federal Reserve will raise interest rates as soon as March
11:04PM ( 13 hours ago )
AP Business - Economy
Venezuela's revolution divided in the cradle of Chavismo
The internal struggles of the movement started by late Venezuelan President Hugo Chávez were encapsulated by the apparent defeat _ and its aftermath _ of one of his brothers during the gubernatorial election in November
9:55AM ( 2 days ago )
Stocks end lower after mixed jobs data as tech sinks again
Stocks ended lower on Wall Street Friday and Treasury yields rose as investors anticipated the Federal Reserve will stay on course to raise interest rates as soon as March
5:21PM ( 2 days ago )
Stocks wobble following mixed jobs data as tech sinks again
Stocks turned mixed Friday as Treasury yields rise, with much of Wall Street seeing the Federal Reserve on course to raise interest rates as soon as March despite a mixed report on the U.S. jobs market
2:05PM ( 2 days ago )
AP Business - Financial Markets
India starts booster shots for vulnerable amid omicron surge
Healthcare and front-line workers along with people above age 60 with health problems are lining up at vaccination centers across India to receive booster shots as infections linked to the omicron variant surge
8:25AM ( 4 hours ago )
As spending bill stalls, Biden climate goals remain elusive
President Joe Biden faces a steep path to achieve his ambitious goal of slashing planet-warming greenhouse gas emissions in half by 2030
1:15PM ( 1 day ago )
Former anti-terror chief arrested over Kazakhstan protests
The former head of Kazakhstan's counterintelligence and anti-terror agency has been arrested on charges of attempting to overthrow the government
12:17PM ( 2 days ago )
AP Business - Industries
EXPLAINER: What does record inflation mean for the eurozone?
Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs
10:43AM ( 3 days ago )
Nations using euro see record inflation. What does it mean?
Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs
8:24AM ( 3 days ago )
Wall Street shakes off some early weakness and edges higher
Major indexes are edging higher in early trading on Wall Street Thursday after shaking off some weakness shortly after the opening bell
9:44AM ( 4 days ago )
AP Business - Financial Services
Scholz's party wants vaccine mandate decision this quarter
Germany’s biggest governing party says it aims for a final decision by the end of March on the introduction of a universal vaccine mandate against COVID-19
7:34AM ( 4 days ago )
Xi'an hospital punished for refusing entry to pregnant woman
Hospital officials in the northern Chinese city of Xi'an have been punished after a pregnant woman miscarried after being refused entry, reportedly for not having current COVID-19 test results
6:26AM ( 4 days ago )
Spike in California virus cases hitting hospitals, schools
California is struggling to staff hospitals and classrooms as a spike in coronavirus infections hits the state
12:41AM ( 4 days ago )
AP Business - Health Care
Hurricane Ida, Europe floods made 2021 costly for disasters
Damage wrought by Hurricane Ida in the U.S. state of Louisiana and the flash floods that hit Europe last summer have helped make 2021 one of the most expensive years for natural disasters
12:15PM ( 15 minutes ago )
Polish senator sues party leader over surveillance remarks
A Polish opposition senator whose phone was hacked with advanced spyware has filed a civil suit against Poland’s ruling party leader
12:12PM ( 17 minutes ago )
Germany blames Malaysian owner for shipyard bankruptcy
Germany is blaming the collapse of a shipyard business on its Malaysia-based owner Genting Group, saying the conglomerate refused to contribute to a government bailout plan
11:57AM ( 32 minutes ago )
Pilot rescued from wreckage in LA moments before train hits
Police body-camera video shows a harrowing rescue in California, where a small plane crashed on railroad tracks shortly after takeoff from a suburban Los Angeles airfield
11:57AM ( 32 minutes ago )
Chicago fight with teachers union stretches into 2nd week
The leader of the Chicago Teachers Union is blaming the city’s mayor for a continued standoff over COVID-19 protocols
11:55AM ( 34 minutes ago )