The Nasdaq Composite index plunged 3.02% while the S&P 500 lost 1.48%. A 0.46% decline in the Dow Jones Industrial Average pushed the index back below the 33,000 level.
|I:DJI||DOW JONES AVERAGES||34200.67||+164.68||+0.48%|
The selloff in the stock market occurred as the 10-year yield spiked 8.9 basis points to 1.73%, closing at its highest level since January 2020, a day after the Federal Reserve lifted its growth and inflation forecasts for the current year and pledged to use all of the tools at its disposal, if necessary, to support the economy.
In stocks, the sharp rise in bond yields weighed on technology shares with Tesla Inc., Apple Inc. and Microsoft Corp. all underperforming.
|QQQ||INVESCO QQQ NASDAQ 100||342.01||+0.40||+0.12%|
Dow components Goldman Sachs Group Inc. and JPMorgan Chase & Co. outperformed as the selloff in the U.S. Treasury market caused the yield curve to steepen.
|GS||THE GOLDMAN SACHS GROUP, INC.||342.61||+4.03||+1.19%|
|JPM||JPMORGAN CHASE & CO.||153.30||+1.14||+0.75%|
In deal news, The Hartford, with a market cap of $23 billion, confirms it has received an "unsolicited, non-binding" proposal from larger rival Chubb which carries a $75 billion market value.
|HIG||THE HARTFORD FINANCIAL SERVICES GROUP INC.||66.35||-0.50||-0.75%|
Elsewhere, II-VI Inc. raised its takeover bid for Coherent Inc. to $7 billion, trumping an offer made a day prior by Lumentum Holdings. The new offer would pay Coherent shareholders $220 in cash and 0.91 II-VI shares for each share they own.
And Nikola Motor Corp. said South Korean partner Hanwha Corp. has decided to halve its 5.65% stake in the electric truck maker. The two companies will maintain their strategic partnership.
In earnings, Dollar General Corp. warned same-store sales would be flat to lower from a year ago due to difficult comparisons. Quarterly results were mixed with earnings missing Wall Street estimates and revenue outpacing forecasts. Williams-Sonoma, however, hiked its dividend by 17% and announced a $1 billion buyback.
In commodities, West Texas Intermediate crude oil slid $4.60 to $60 a barrel while gold inched up $5.40 to $1,732.20 an ounce.
Overseas markets were higher across the board.
Germany’s DAX 30 outperformed in Europe, trading up 1.23%, while France’s CAC 40 and Britain’s FTSE 100 added 0.13% and 0.25%, respectively.
In Asia, China’s Shanghai Composite index ticked up 0.51%, Japan’s Nikkei rallied 1.01% and Hong Kong’s Hang Seng index climbed 1.28%.