S&P 500 lowest since April 2021, Nasdaq down 4% due to concern over rate

  • Nasdaq leads in decline
  • Twitter is falling because the Hindenburg seller is reporting a risk for Musk’s deal
  • Indices fell: Dow 1.6%, S&P 500 2.8%, Nasdaq 4%

NEW YORK, May 9 (Reuters) – U.S. stocks plummeted on Monday, with the S&P 500 reaching its lowest level since April 2021, led by a fall in mega-cap stocks as the 10-year reference yield reached a new 3-1 / 2-year highs and investors have become more concerned about the outlook for interest rates.

The Nasdaq fell more than 3%, while Apple shares (AAPL.O) also fell more than 3% were the biggest weights on the Nasdaq and S&P 500.

The reference 10-year US Treasury yields reached their highest level since November 2018 at the start of trading.

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Investors are worried about how aggressive the Federal Reserve will have to be to tame inflation. The US Federal Reserve recently raised interest rates by 50 basis points.

“Markets are digesting the beginning of a return to a more normal monetary policy environment,” said Kristina Hooper, chief global market strategist at Invesco, New York.

“A more aggressive movement raises the specter of a recession, especially with all these complications – high inflation, the Russian invasion of Ukraine, supply chain disruptions linked to COVID,” she said.

Investors are also concerned about the slowdown in China’s economy following the recent rise in COVID cases.

The Dow Jones Industrial Average (.DJI) fell 525.94 points, or 1.6%, to 32,373.43, the S&P 500 (.SPX) lost 116.11 points, or 2.82%, to 4,007.23, and the Nasdaq Composite fell 1 point (.IX86.) 4%, to 11,658.53.

The S&P 500 reached its lowest level since April 2021, while the Nasdaq reached its lowest level since its lowest level since November 2020.

Growing stocks have been among the most difficult in the recent sell-off as their returns and valuation are discounted more deeply as yields rise.

The energy sector (.SPNY) also fell as oil prices fell.

Twitter Inc. (TWTR.N) fell more than 3% as Hindenburg Research took a short position on shares of the social network, saying the $ 44 billion sale deal to Elon Musk has a significant risk of price cuts. Read more

The declining problems outpaced those advancing on the NYSE by a ratio of 7.12 to 1; on the Nasdaq, a ratio of 5.70 to 1 favored falls.

The S&P 500 announced 1 new high in 52 weeks and 67 new lows; The Nasdaq Composite recorded 13 new highs and 1146 new dips.

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Additional reports by Devik Jain and Amrute Khandekar of Bengaluru; Editing: Shounak Dasgupta, Anil D’Silva and Aurora Ellis

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