Tech

US stocks trade mixed as investors struggle to recoup losses from tech-led rout

US stocks were mixed on Wednesday after a massive tech sell-off in the previous session drove the stock market to its biggest decline in months.

The benchmark S&P 500 slightly gained after closing lower by 2% in its worst one-day performance since May on Tuesday. The Dow Jones Industrial Average was higher, but the Nasdaq slipped at the end of the day to end in the red.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

The 10-year US Treasury yield shed around 0.8 basis points, slipping to 1.544% after rising to an intraday high of 1.567% Tuesday – its highest since the end of June – on fears of rising inflation and uncertainty around Congress’ ability to raise the debt ceiling before the Treasury runs out of money on October 18.

“Investors just want to fast forward past the debt ceiling drama and focus on the global economic recovery,” Edward Moya, senior market analyst at foreign exchange firm Oanda, said in a note. “The global reopening trade was delayed due to delta, but that should firmly be the theme as supply chain issues improve.”

High-growth tech shares are sensitive to yields, and a rise in global bond yields makes returns on stocks look less attractive.

Still, investors should hold onto their high-growth tech stocks for the long-term, Goldman Sachs said in a recent note. Even if the 10-Year US Treasury yield hit a three-month peak, interest rates are still historically low, the bank added, an environment that should support valuations for high-quality, high-growth stocks.

Famed economist Mohamed El-Erian reiterated in a recent opinion piece that the sharp rise in Treasury yields should urge the Federal Reserve to rethink its taper timeline. He warned that the increasingly volatile Treasury markets could spill over into other financial sectors, threatening the real economy.

Warby Parker soared as much as 36% in its direct listing debut, handing the eyewear retailer a valuation of more than $6 billion. The firm’s direct listing price came in at $54.70 per share, well above its reference price of $40 per share.

Lucid jumped 15% after the company said it has started producing its flagship electric sedan and will start delivering vehicles to customers late next month.

In cryptocurrencies, bitcoin slightly slipped by 0.71% to $41,261.45, extending its two-day loss.

El Salvador President Nayib Bukele said the Central American country has taken the first steps towards getting its bitcoin volcano project underway, part of a plan to mine cryptocurrencies with renewable power.

In Thailand, the country’s tourism body is reportedly considering launching a digital token to tap into the growing interest in the tourism world for cryptocurrencies. The coin will involve transferring vouchers into digital tokens.

Oil prices scaled back after soaring above $80 for the first time in three years as a shortage in natural gas spurs demand.

West Texas Intermediate crude oil slipped by 0.56% to $74.57 per barrel. Brent crude, oil’s international benchmark, fell 0.57% to $78.64 per barrel.

Gold fell 0.61%, to $1,724.88 per ounce.

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