Stock Market Today: Tech Throttled as Treasury Yields Continue Climb
Nosebleed valuations in the technology sector cooled off Monday amid a brutal day for Nasdaq longs. The Dow, meanwhile, clawed out modest gains.
How'd the stock market do today? The answer's a little complicated, and heavily depends on which major blue-chip index you hitch your wagon to.
The S&P 500 closed with a 0.8% loss to 3,876, while the tech-heavy Nasdaq Composite slumped for a fifth consecutive day, by 2.5% to 13,533 … but the Dow Jones Industrial Average managed to claw out a 0.1% gain, to 31,521.
It's a continuation of a trend that has emerged over the past couple of weeks amid a sharp rise in interest rates; higher rates on bonds can weigh on the appeal of stocks broadly, but specifically on the growthy but extremely expensive tech sector, where costlier borrowing will trim margins. Apple (AAPL) declined 3.0%. Tesla (TSLA) plunged 8.6%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
On the flip side, financial stocks continued to jump, as higher rates help banks and insurers pad their bottom line. Monday's best performances came from the energy sector, however, as Texas's recent weather woes are expected to hinder oil and gas supplies for weeks. U.S. crude oil futures jumped 3.8% to $61.49 per barrel, lifting stocks such as Exxon Mobil (XOM, +3.7%) and Chevron (CVX, +2.7%).
Other action in the stock market today:
- The small-cap Russell 2000 finished 0.7% lower, to 2,251.
- Gold futures rallied 1.7% to finish the day at $1,808.40 per ounce.
- Bitcoin prices swung quite a bit. After finishing at $55,371 on Friday afternoon, they briefly eclipsed $58,000 this weekend before peeling back. Prices then dipped to as low as $50,623 in Monday trading before finishing at $54,009. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
More New Stocks Are on the Way
While investors may have lost some appetite for expensive tech stocks, they're clearly still hungry for the novel and new. 2021 has seen voracious demand for initial public offerings (IPOs), including Bumble (BMBL), Affirm (AFRM) and Petco (WOOF) – and more are on the way.
In the past few days, several high-profile companies have thrown their hats into the ring by filing S-1s with the SEC, including Coupang (South Korea's second-largest online retailer) and crafts retailer Jo-Ann Stores.
If you're curious about these and other potential offerings on the 2021 horizon, check out our frequently updated list of the year's hottest upcoming IPOs. Several of the companies on our original watch list have already gone public; currently, we're looking at a dozen companies that should pull off IPOs by year's end. We break down each company: what they do, when they're expected to offer up shares, and how much each company will be valued at.
Kyle Woodley was long Bitcoin as of this writing.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
How to Add Your Driver’s License or State ID to Google WalletStore and use your digital ID securely on your Android device for TSA, age verification and more.
-
I Retired at 60 Two Years Ago With $3.1 Million. My 62-Year-Old Wife Still Works Because She Wants to, but She Resents My Free Time. Help!We asked a psychologist and a mediation expert for advice.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
Honeywell Leads Dow Higher: Stock Market TodayOil prices got a lift after the Treasury Department announced new sanctions on Russia's two largest oil companies.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
