Fri, 05 Mar 2021

U.S. stocks open lower as tech sell-off continues

Xinhua
24 Feb 2021, 02:05 GMT+10

NEW YORK, Feb. 23 (Xinhua) -- U.S. stocks opened lower on Tuesday as a major setback in tech sector weighed on the market.

Shortly after the opening bell, the Dow Jones Industrial Average fell 113.35 points, or 0.36 percent, to 31,408.34. The S&P 500 dropped 33.37 points, or 0.86 percent, to 3,843.13. The Nasdaq Composite Index shed 322.03 points, or 2.38 percent, to 13,211.02.

Of the 11 primary S&P 500 sectors, technology slumped 2.7 percent in morning trading, leading the laggards. The tech group dipped 2.26 percent in the previous session.

Investors focused on rising bond yields. The yield on the benchmark 10-year U.S. Treasury held steady on Tuesday around 1.36 percent. It jumped to 1.34 percent last week, near its highest level since February 2020. The 30-year yield touched a one-year high of 2.2 percent on Monday.

Higher yields make bonds a more viable alternative to stocks, particularly those that have seen their valuations stretch, experts noted.

Wall Street also eyed testimony by Federal Reserve Chairman Jerome Powell on the economic outlook as the Fed chief begins two days of congressional hearings. Investors are eager to hear his remarks on the rise in bond yields and inflation expectations.

On Monday, U.S. equities closed mostly lower with the tech-heavy Nasdaq down nearly 2.5 percent.

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