Tech stocks led further declines in the stock market Wednesday, as the Nasdaq composite slid more than 2%.
The Nasdaq was down 2.5% and back below the 14,000 level. Invesco QQQ Trust gapped down 2.4%. The Nasdaq 100-tracking ETF met resistance at its 200-day moving average the past several days, just like it did in early February.
The S&P 500, which has a smaller percentage of techs, was down 1.3%. The Dow Jones Industrial Average fell 0.8%. The Russell 2000 lost 1.8%.
Volume rose on the Nasdaq and NYSE compared with the same time on Tuesday. Breadth was poor, with decliners over advancers by about 4-to-1 on the NYSE and Nasdaq.
Bond Yields Rise, Pressure Stocks
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34354.67 | -286.51 | -0.83 |
| S&P 500 | (0S&P5) | 4465.01 | -60.11 | -1.33 |
| Nasdaq | (0NDQC ) | 13855.66 | -348.51 | -2.45 |
| Russell 2000 | 199.25 | -3.74 | -1.84 | |
| IBD 50 | 36.66 | -1.12 | -2.96 | |
Last Update: 10:10 AM ET 4/6/2022 |
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A stock market uptrend that was looking more firm is stumbling this week. Part of the reason is rising Treasury yields and an inversion of the yield curve. On Tuesday, investors had more reason to fear rising interest rates when Fed governor Lael Brainard said she expects the central bank to quickly roll back its balance sheet as it takes aggressive steps to fight inflation.
The 10-year yield rose 7 basis point to 2.63% this morning, and is up about 18 basis points this week so far.
The Innovator IBD 50 ETF fell 2.3%. IBD 50 stock Darling Ingredients fell below its 81.22 buy point after hesitating around that level for a couple of weeks.
Zim Integrated Shipping is now below its 50-day line. New Fortress Energy plunged 9% in big volume. The stock has shaved a good chunk of gains from its 35.80 buy point.
Technology Select Sector SPDR slid 2.3% and was among the weakest S&P sector ETFs after gapping below its 50- and 200-day moving averages. The consumer discretionary sector also fell more than 2%, and SPDR S&P Transportation ETF was off 2.5% as airline stocks fell broadly.
JetBlue slid nearly 7% in heavy volume after the airline offered to buy Spirit Airlines in a deal valued at $3.6 billion. Spirit in February agreed to a buyout from Frontier Airlines parent Frontier Group Holdings worth $2.9 billion.
Spirit Airlines stock, which shot up more than 22% Tuesday on news of the JetBlue offer, fell 2.4% in morning trading. Frontier Group fell more than 8% in heavy trading.
In other buyout news, Dave & Buster's Entertainment agreed to acquire family entertainment company Main Event for $835 million. Dave & Buster's stock fell 7% in volume several times its average. The stock has been making a choppy recovery this year as the omicron variant of Covid-19 fades and it hit a 52-week high last week.
Digital World Acquisition is on pace for its ninth consecutive decline, down 7% in morning trading. The SPAC that plans to take public Donald Trump's social media company is down 29% this week on top of last week's 11.5% tumble.
Among some setbacks for Truth Social, Elon Musk's acquisition of a minority stake in Twitter and his appointment to the company's board raises speculation that Twitter could lessen restrictions on users. Truth Social bills itself as a platform without censorship.
