TIMES.KY

Cayman Islands, Caribbeanand International News
Saturday, Feb 04, 2023

Nasdaq sheds 4% as worst tech selloff since 2020 tanks US stocks

Nasdaq sheds 4% as worst tech selloff since 2020 tanks US stocks

Facebook owner Meta Platforms suffered a historic drop that wiped more than $250bn from its value.

The worst selloff in technology shares since fall 2020 sent U.S. equity indexes reeling, halting a four-day rebound.

The Nasdaq 100 shed 4.2% and the S&P 500 fell 2.4% as Facebook-owner Meta Platforms Inc. suffered a historic rout that wiped more than $250 billion from its value.

The declines came as investors also digested concerns about persistently high inflation from the European Central Bank with hawkish comments from Christine Lagarde. The euro spiked higher along with European bond yields. Meanwhile U.S. Treasuries followed the euro zone lower and the dollar fell.

“We got hit with a one-two punch today with the big drop in Facebook and the surprising news that the ECB has become more hawkish,” said Matt Maley, chief market strategist for Miller Tabak + Co. “The stock market had rallied in the afternoon each of the last four days, so traders were hoping that could bail us out again. When the rally didn’t materialize, traders lost a lot of confidence.”

Weak numbers from U.S. tech giants including Spotify Technology SA jolted investors who had bet a strong earnings season would keep equities attractive and counter some of their lingering worries including tighter monetary policy. Markets have swung sharply and stocks are nursing losses this year as officials pare stimulus to curb inflation.


In Europe, the Bank of England hiked its key rate and signaled it would start running down bond holdings. Meanwhile, the ECB held its interest rates and said net buying under its emergency support program will end in March.

Lagarde said inflation would remain elevated for longer but the bank was getting “much closer” to its inflation target. Germany’s two-year yield rose to a 2015 high. The Stoxx Europe 600 fell below its 100-day moving average.

“As markets focus closely on large, developed-market monetary policy stances — and investor sentiment around the globe shifts — economic activity data releases will be key,” said Marilyn Watson, head of global fundamental fixed income strategy at BlackRock.

Growth in the U.S. services sector pulled back in January to the slowest pace in nearly a year. Meanwhile, U.S. initial jobless claims fell more than expected last week to 238,000 ahead of data on payrolls Friday.

“Tomorrow’s jobs report is a reminder that expectations for Fed policy are the key influence on this market right now, and if economic data, especially inflation data, comes in ‘too hot’ then that will rekindle hawkish Fed concerns like in January, and we would expect at least a partial return of the January volatility,” wrote Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “Bottom line, Fed policy still very much matters to this market.”

What to watch this week:


*  U.S. payrolls report for January, Friday

*  Winter Olympics kick off in China, Russia’s President Vladimir Putin due to attend opening ceremony, Friday

Some of the main moves in markets:

Stocks


*  The S&P 500 fell 2.4% as of 4:01 p.m. New York time

*  The Nasdaq 100 fell 4.2%

*  The Dow Jones Industrial Average fell 1.5%

*  The MSCI World index fell 1.8%

Currencies


*  The Bloomberg Dollar Spot Index fell 0.3%

*  The euro rose 1.1% to $1.1431

*  The British pound rose 0.1% to $1.3595

*  The Japanese yen fell 0.4% to 114.94 per dollar

Bonds


*  The yield on 10-year Treasuries advanced five basis points to 1.83%

*  Germany’s 10-year yield advanced 10 basis points to 0.14%

*  Britain’s 10-year yield advanced 11 basis points to 1.37%

Commodities


*  West Texas Intermediate crude rose 2.1% to $90.11 a barrel

*  Gold futures fell 0.2% to $1,806.80 an ounce

Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
British PM Rishi Sunak pledges further action on strikes to 'protect lives'
×