The Nasdaq tumbled for a second-day in a row Thursday, falling into correction territory as U.S. rates resumed their sharp acceleration after Federal Reserve Powell offered no clues on ramping-up bond purchases and shrugged off investor fears about rising inflation.
The Nasdaq fell Wednesday, as concerns over “stretched” valuations in big tech were exacerbated by a renewed climb in U.S. interest rates even as data pointed to a wobble in the labor market.
The tech-heavy Nasdaq suffered its worst day in nearly four months Thursday, as a sharp spike in U.S. government bond yields on inflation fears exacerbated fears about high-valued growth sectors and triggered selling across tech.
The Nasdaq closed lower while the S&P 500 was little changed on Wednesday as investors rotated out of technology shares and concerns about inflation added some pressure on stocks.
The Nasdaq eked out a record close Tuesday on rising optimism over the recovery as the pace of vaccine rollouts picks up and infections continue to fall.
The S&P 500 registered its biggest daily percentage gain since Nov. 24 on Monday after a steep sell-off last week, and technology-related shares led the advance, while a move by retail traders into silver drove up mining shares.