The S&P 500 Falls Below 5,100 as Big Tech Sells Off – US Market Wrap
Daily Dose, US

The S&P 500 Falls Below 5,100 as Big Tech Sells Off – US Market Wrap

Tech megacaps dragged down stocks, while bond yields rose after strong retail sales fueled expectations that the Federal Reserve would not cut interest rates soon. The price of oil fluctuated in response to geopolitical uncertainty.

In a volatile session, the S&P 500 erased an earlier gain and fell more than 1%. Microsoft, Apple, and Nvidia led declines in the rate-sensitive technology sector. Volatility increased, with the premium for one-month put options to protect against a pullback in US stocks reaching its highest level since October. The VIX, Wall Street’s “fear gauge,” reached previously unheard-of levels this year.

The S&P 500 fell below 5,100, reaching its lowest level in nearly two months. The technology-heavy Nasdaq 100 fell more than 1.5%. Both gauges breached their 50-day moving averages, which several chartists interpret as a bearish signal. Banks outperformed after Goldman Sachs Group reported a surprise profit.

Treasury 10-year yields rose nine basis points to 4.62%, while those on two-year notes approached 5%. Bonds were also under pressure as JPMorgan Chase and Wells Fargo entered the US high-grade bond market, the first in a likely parade of bond sales by banks following the results.