News – USA – US STOCKS tech sell-off hits Nasdaq, Powell comments cap decline

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23 February (Reuters) – The Nasdaq index fell in volatile trading on Tuesday as investors sold mega-cap growth stocks on valuation concerns, despite comments on the economy from Fed chairman Jerome Powell added to selling pressure decrease

In his testimony to the Senate Banking Committee, Powell pushed back on proposals that the US. Central bank support to the economy risked inflating a dangerous asset bubble.A possible spike in inflation from a number of stimulus measures and a surge in bond yields have sparked a sell-off in technology-related stocks, which have been the focus of a formidable rally that has been major indices this year brought it to record levels

“What the market has digested for the past week or so is what it means when the return on the US. 10 years increases? This clearly indicates that either economic activity is picking up or inflation is going up, “said Art Hogan, chief marketing strategist at National Securities in New York

“And assuming that inflation is rising and some stocks are being sold, and then you hear that the Fed plans to stick to lower interest rates and quantitative easing, it could allay some of those fears”

Shares of Netflix Inc

NFLXÖ

, Alphabet Inc

TogetLÖ

, Microsoft Corp.

MSFTÖ

, Amazoncom Inc

AMZNÖ

and Apple Inc

AAPLÖ

slipped between 05% and 33%, while government bond yields remained elevated

“As the economy reopens, interest rates will rise and this will hit the high valuation of technology stocks in particular, where future earnings and cash flows are far further away than some more economically sensitive areas of the market,” said Ross Mayfield, analyst for Investment strategy at Baird in Milwaukee

Six of the 11 major S&P 500 sectors were in the red and consumers had discretion

SPLRCD

, Technology

SPLRCT

and communication services

SPLRCL

among the biggest returns

Value stocks

IVX

willing to benefit from an economic recovery have outperformed the growth shares

IGX

in February

The S&P 500 banking index SPXBK rose 06% to a year-long high, somewhat offsetting the technical resistance that sparked the benchmark index

SPX

up to 17% before Powell’s testimony

A slump in Bitcoin

BTC = BTSP

injured shares of Tesla Inc

TSLAÖ

who had invested $ 1.5 billion in cryptocurrency recently, the electric vehicle maker slipped 58% and should plunge into the red for the year Miners Riot Blockchain Inc

RANDALY

and Marathon Patent Group Inc

MARAÖ

The Dow Jones Industrial Average plunged more than 24% each, while bitcoin bank Silvergate Capital Corp SIN slipped 222% 12:47 pm ET

DJI

was down 16556 points or 053% at 3135613, the S&P 500

SPX

was down 3772 points or 097% at 3rd83878 and the Nasdaq Composite

IXIC

was down 33400 points or 247% at 1319904

Home Depot Inc (NYSE:

HD

) HDN fell 42% after the hardware store warned it couldn’t predict how consumer spending would go this year, outnumbered advanced for a 2 out of 78-to-1 ratio on the NYSE and a 509-to-1 -Ratio on the Nasdaq

The S&P index posted 45 new 52-week highs and no new low, while the Nasdaq posted 133 new highs and 54 new lows

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