The U.S. stock market’s main indexes dropped on Thursday, with the Nasdaq on track for its worst day in four months, as a tech selloff continued following a rise in U.S. bond yields.
The benchmark 10-year Treasury yields hit a one-year high of 1.53%, prompting investors to lock in profits on some high-flying growth stocks due to concerns over heightened valuations.
Apple Inc, Amazon.com Inc, Microsoft Corp, Alphabet Inc, Facebook Inc and Netflix Inc were down between 1.9% and 2.9%.
The S&P 500 technology sector and communication services, among the sectors that powered the market’s rally in 2020, were down 3.9% and 2.3%.
“In the beginning of February, the stimulus news was the driving force but now that it has been priced in, there is nothing on the distant horizon for equity investors to be excited about and there is a concern that upside is limited,” said Mike Zigmont, head of trading and research at Harvest Volatility Management.
MacDailyNews Take: The winter doldrums.