S&P 500 Suffers Its Longest Slide Since January – US Market Wrap

Despite a drop in bond yields, the stock market experienced its longest losing streak since January as a few major tech companies sold off.

Equities fell for the fourth day in a row, with the S&P 500 losing more than 4% from its all-time high. Chipmakers bore the brunt of the selling after ASML Holdings NV’s orders dropped. Nvidia led megacap losses. A tug-of-war between bulls and bears erupted during the expiration of VIX options, with Wall Street’s favourite volatility gauge whipsawing.

After a 10% stock rally in the first quarter, the strongest start to a year since 2019, investors have grown increasingly sceptical about how much further the market can go in the near term, even with the economy continuing to perform well.

The S&P 500 fell to about 5,030. The Nasdaq 100 dropped more than 1%. Just a day after Jerome Powell cast doubt on rate-cut bets, dip buyers emerged in the Treasury market, with two-year yields falling further below 5% and a $13 billion sale of 20-year bonds drawing strong demand.