Tech Stocks Down Again on Wall Street

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Tech funds were hit again on the New York stock markets on Thursday.

 

Investors concluded from the Federal Reserve’s explanation of the latest interest rate decision that the US central bank umbrella will take little action against rising inflation for the time being, which will push up yields on US government bonds further.

The rapidly increasing tech funds are, therefore, being put on sale because they are relatively expensive.

Tech gauge Nasdaq fell 1.4 percent in the first trading minutes to 13,330 points. Heavyweight Apple lost 2 percent, despite media reports that the company will release new iPads. Microsoft, Facebook, Google mother Alphabet and Netflix lost up to almost 2 percent.

On Wednesday, the Fed announced that it saw no reason to intervene for the time being, despite rising inflation and the solid economic growth outlook. The yield on ten-year government bonds of the United States, which is moving in the opposite direction of bond prices, therefore spiked to its highest level since January last year.

Banks benefited from this development. For example, shares of large financial groups such as Goldman Sachs, Wells Fargo, Morgan Stanley, Citigroup and Bank of America gained more than 2.2 percent.

Investors were also put down on the macroeconomic front. The weekly number of claims for unemployment benefits in the US has increased by 45,000 to 770,000, while a decrease was expected. This revives uncertainty about the recovery of the American labour market.

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