U.S. stocks drown as Dow falls from record level1 min read
Dow Jones Industrial Average fell from its record level on Tuesday followed by the fall of the U.S. stocks in overnight trading. Due to the rising interest rates, Dow slipped from its record level.
Meanwhile, S&P 500 rose 0.15% and Nasdaq rose 0.16% respectively. Dow futures rose 30 points.
The reason behind the raise in the interest rates is the U.S. 10 years Treasury yield which cut a 14-month high of 1.77%. This caused peer pressure on the major averages. Amidst the powerful COVID-19 vaccine rollout and presumptions of a huge economic recovery, bond yields have risen this year.
The Dow Jones Industrial Average lost more than 100 points and slipped from a record high on Monday. The S&P 500 lost nearly 0.3%.
Due to Facebook, Amazon, Apple, Netflix and Microsoft declination, the Nasdaq Composite drowned by nearly 0.1%.
The mostly affected is the tech stocks specially because of the rising rates as they are dependent to borrowing money at cheap interest rates in order to invest for strengthening their future growth.