Tue. Dec 6th, 2022


What started as a rally in the third quarter turned into a bust for tech traders.

The Nasdaq Composite fell 5.1% this week after losing 5.5% the previous week. That marks the worst two-week stretch for the tech-heavy index since it plunged more than 20% in March 2020 at the start of the Covid-19 pandemic in the US.

With the third quarter situation set to wrap up next week, the Nasdaq is poised to post losses for the third quarter in a row, except it could probably erase what is now a 1.5% drop over the past five days of buying and selling on the interval.

Traders were dumping tech stocks from the doldrums of 2021, betting that rising inflation and higher interest rates would have an outsized impact on companies that mostly rallied across the board during whisper times. The Nasdaq is now just above its two-year low in June.

Markets were hit by the persistent price hike by the Fed, which on Wednesday boosted benchmark interest rates by three-quarters of a percentage point and indicated that this may effectively protect the rise above the original level because tries to reduce inflation from its most absolute level. real-looking stages since the early 1980s. The central bank took the price of its fed funds down to a range of 3%-3.25%, the last clue it has been since early 2008, after the third consecutive change of 0, 75 percentage points.

Meanwhile, as rising interest rates pushed the 10-year Treasury yield to its absolute most real…



Source link