News – US – Equities fall on Powell’s comments

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A decline in tech stocks continued on Tuesday as US Stocks fell and investors waited for the US Federal Reserve Chairman Jerome Powell to testify in Congress on the health of the economy
The S&P 500 ticked 0. 4% The benchmark stock indicator fell for the fifth consecutive time on Monday, the longest losing streak since last February The Nasdaq Composite Index fell 12% as technology stocks continued to lead the market down at one point the tech-heavy index fell more than 3% The Dow Jones Industrial Average was down 96 points, or 0, after 3%

A sharp increase in returns on US. Government bonds in recent days has failed investors ???? Appetite for riskier assets, including stocks The most vulnerable are stocks of tech companies, which for the most part have been more fueling the broader market over the past year. That’s because many tech companies ???? Valuations are tied to their future earnings potential. These gains are less valuable these days when investors apply a higher discount rate

Of course, the surge in bond yields causes investors and markets to scrutinize stocks said Paul Jackson, global head of asset allocation research at Invesco Investing in government bonds looks more attractive for the first time in months, he said

But “the level at which bond returns on stocks get really problematic is far from where we are now,” Mr. Jackson added

Jerome Powell, Federal Reserve System

News – US – Stocks fall ahead of Powell’s comments

Source: https://www.wsj.com/articles/global-stock-markets-dow-update-02-23-2021-11614070664