NEW YORK, April 11 (Xinhua) — U.S. stocks fell noticeably on Monday as traders rotated out of threat property, particularly, high-flying stocks, amid a momentum in bond yields.
The Dow Jones Industrial Average dropped 413.04 factors, or 1.19 %, to 34,308.08. The S&P 500 fell 75.75 factors, or 1.69 %, to 4,412.53. The Nasdaq Composite Index shed 299.04 factors, or 2.18 %, to 13,411.96.
All the 11 main S&P 500 sectors resulted in pink, with vitality and expertise down 3.11 % and a pair of.6 %, respectively, main the losses.
U.S.-listed Chinese firms traded principally decrease with seven of the highest 10 stocks by weight within the S&P U.S. Listed China 50 index ending the day on a downbeat observe.
A speedy rise in bond yields made traders to reassess whether or not costs have run too excessive for stocks. The yield on the benchmark U.S. 10-year Treasury bond topped 2.79 % on Monday, reaching its highest degree in three years, whereas the yield on the 30-year Treasury observe additionally superior, as traders guess on aggressive coverage tightening from the Federal Reserve.
Higher bond yields make future earnings much less priceless in present phrases, a specific headwind for fast-growing tech stocks whose costs replicate expectations for earnings that can stream in years from now, consultants famous.
For the week ending Friday, the Dow and the S&P 500 fell 0.3 % and 1.3 %, respectively, whereas the tech-heavy Nasdaq dropped 3.9 %.
