Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The US stock market is perhaps responding to a 1.41% drop in the 10-Year Treasury rate, a major focus point for equity investors.
The US stock market is seeing a strong pull back after starting the week on a stellar note. The Dow Jones Industrial Average (INDEXDJX: .DJI) slipped by 0.46%, shedding 143.99 points to 31,391.52. The Nasdaq Composite (INDEXNASDAQ: .IXIC) dropped 1.69% to 13,358.79 while the S&P 500 Index (INDEXSP: .INX) which recorded a 2% bullish jump on Monday shed off 31.53 points, atop a 0.81% dip to 3,870.29.
The technology service companies, as well as consumer-focused firms, saw the biggest hit at the close of trading on Tuesday. The electric automaker, Tesla Inc (NASDAQ: TSLA) recorded a dip of 4.45% to close at $686.44 per share. American multinational technology company, Microsoft Corporation (NASDAQ: MSFT) also slipped 1.30% to $233.87.
Amazon.com Inc (NASDAQ: AMZN) also took a hit as the retailer shed off $51.61 atop a 1.64% loss to close at $3,094.53 per share. Walmart Inc (NYSE: WMT) trailed Amazon on the losing streak with a 0.96% trip-off to $130.11 per share.
US Stock Market Responding to 10-Year Treasury Rate Dip
The US stock market is perhaps responding to a 1.41% drop in the 10-Year Treasury rate, a major focus point for equity investors. There were indications that the rate has stabilized as it surged to a high of 1.6% in the past week, allaying fears about increased borrowing costs and inflation, CNBC reported.
“Markets may be trapped in a tug-of-war between what they expect to happen and pandemic-fueled insecurities which are compounded by other, harder to quantify, market impulse,” Chris Hussey, a managing director at Goldman Sachs, said in a note. “On days like today, with no news and little macro to help investors keep the faith, we see ‘what ifs’ emerge – sideways trading, across all sectors, coupled by a pull back in rates.”
Other sectors of the market had a mixed share of the plunge with Uber Technologies Inc (NYSE: UBER) surged 0.46% to close at $54.65 per share while the rival company LYFT Inc (NASDAQ: LYFT) reported a Tuesday close with a 0.49% dip to $57.06.
Pharmaceutical Stocks Also Fared Poorly
The attempt by governments around the world to ramp up the rate of vaccination did not impact the shares of American pharmaceutical companies. While Pfizer Inc (NYSE: PFE) dropped by 0.53% to $33.51, Moderna Inc (NASDAQ: MRNA) slumped by 6.73% to $146.81.
Despite its single-dose vaccine being approved by the US Food and Drug Administration (FDA), Johnson & Johnson (NYSE: JNJ) stock closed Tuesday’s session down by 0.19% to $159.02. The company’s shares are bound to recover in the coming days a President Joe Biden has confirmed Merck & Co Inc (NYSE: MRK) will be helping in the vaccine manufacturer in order to beat deadlines.