Rising interest rates on US debt pressures technology – Stock Exchange

The Dow Jones industrial index closed at 0.21%, to 34,869.37 points, having been the only big one on Wall Street to end in the green.

The Standard & Poor’s 500 yielded 0.28%, to 4,443.11 points, and the technological Nasdaq Composite slipped 0.52% to settle at 14,969.97 points.

Tech was among the most under pressure this session, as interest rates on 10-year debt rose to late-June highs above 1.5% in anticipation of a tighter monetary policy by the Fed .

This is after last week the central bank announced that it is likely to start withdrawing stimulus to the economy from November and signaled that interest rates could be raised sooner than expected.

This worsening of bond interest rates has heightened fears that there are many overvalued stocks, especially in the technology sector.

“If interest rates rise further, this could weigh especially on high-growth tech stocks whose dividend yields are low,” ThinkMarkets analyst Fawad Razaqzada told Bloomberg.

At the same time that there was a selloff in growth stocks, such as technology, there was a greater focus on listed companies that are more sensitive to the evolution of the economy – which has an encouraging outlook –, such as energy and financial , which sustained the Dow Jones.

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