This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Tech Stocks Drag Down S&P 500, Nasdaq Composite
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Tech Stocks Drag Down S&P 500, Nasdaq Composite
Markets

Tech Stocks Drag Down S&P 500, Nasdaq Composite

Editorial Board Published January 13, 2022
Share
Tech Stocks Drag Down S&P 500, Nasdaq Composite
SHARE

A decline in technology stocks dragged down major U.S. stock indexes Thursday, leaving the Nasdaq Composite at its lowest close since October.

Contents
Stocks have mostly risen this week.Bracing for Inflation

Technology stocks have come under pressure in the new year as government-bond yields have risen. Higher yields can reduce the appeal of the future earnings promised by many tech stocks.

The S&P 500 fell 67.32 points, or 1.4%, to 4659.03. The Dow Jones Industrial Average dropped 176.70 points, or 0.5%, to 36113.62. The tech-heavy Nasdaq Composite slumped 381.58 points, or 2.5%, to 14806.81.

The largest U.S. stocks helped pull the market lower, with Apple shares falling $3.34, or 1.9%, to $172.19, and Microsoft shares sliding $13.47, or 4.2%, to $304.80.

The technology sector fell 2.7%, making it the worst-performing group in the S&P 500. The decline brought the tech segment’s year-to-date losses to 5.6%.

The yield on the benchmark 10-year U.S. Treasury note ticked down to 1.708% Thursday, from 1.724% Wednesday. It remains well above the 1.496% at which it finished 2021. Bond yields rise as prices fall.

When yields on longer-term bonds move higher, “you tend to reprice those growth stocks,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “If you increase that interest rate, that puts pressure on your present value of those companies.”

Trading has been choppy in recent days as investors consider the path forward for stocks. The S&P 500, which gained 27% last year, is down 2.2% so far in 2022.

Investors are keeping a close watch on any developments that could affect the Federal Reserve’s calculations about tightening monetary policy to counter inflation. Central bank officials have signaled that an interest-rate rise could come as soon as March. The Fed’s James Bullard said Wednesday that four rises were likely in 2022. 

Federal Reserve governor Lael Brainard told Congress on Thursday that efforts to reduce inflation are the central bank’s “most important task.” Ms. Brainard is the White House’s nominee to serve as the Fed’s No. 2 official.

“Our monetary policy is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone,” Ms. Brainard said.

“The main story is the market view on the central bank’s next steps. The market is balancing two things: less support from monetary policy, but overall the underlying economy is good, and we think the earnings figures that will start to come out now will be quite strong,” said Luc Filip, head of investments at SYZ Private Banking.

Stocks have mostly risen this week.

Photo: BRENDAN MCDERMID/REUTERS

Investors on Thursday examined data showing that filings for jobless claims rose to a seasonally adjusted 230,000 last week, higher than economists had expected. A tight U.S. labor market has kept applications near pre-pandemic lows for the past two months.

Other data showed signs of possible easing in inflationary pressures in the U.S. supply chain. The Labor Department said its producer-price index rose 0.2% in December from the prior month, the slowest pace since November 2020.

“It fits into a larger narrative that inflation is likely peaking this quarter,” said Jack Ablin, founding partner and chief investment officer at Cresset Capital.

Earnings season kicks off this week, with major financial firms including BlackRock, Citigroup, JPMorgan and Wells Fargo set to report Friday. Investors are on edge after Jefferies Financial Group posted revenue and earnings that missed analysts’ estimates Wednesday, said Jeffrey Meyers, a consultant at Market Securities.

Analysts expect that profits from companies in the S&P 500 rose 22% in the fourth quarter from a year earlier, according to FactSet.

Among individual stocks, shares of Delta Air Lines rose 86 cents, or 2.1%, to $41.47, despite the company posting a quarterly loss, after the airline’s chief executive said he expected it to quickly recover from the effects of the Omicron variant. Shares of home builder KB Home climbed $7.00, or 17%, to $49.38 after its earnings came in above analysts’ expectations.

In a confirmation hearing for his second term as Federal Reserve chairman, Jerome Powell said the central bank would use its tools to tamp down inflation. Photo: Graeme Jennings/Press Pool

Overseas, the pan-continental Stoxx Europe 600 fell less than 0.1%.

In Asia, most major benchmarks fell. The Shanghai Composite Index lost 1.2% on concerns about China’s latest Covid-19 outbreak after the port city of Tianjin reported higher infections. Japan’s Nikkei 225 retreated 1%. 

Genting Hong Kong, a cruise-ship operator, plunged 56%. The stock resumed trading Thursday after a German subsidiary filed for insolvency, triggering defaults.

Write to Karen Langley at [email protected] and Anna Hirtenstein at [email protected]

Bracing for Inflation

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Smart guns with user recognition will hit U.S. market this year Smart guns with user recognition will hit U.S. market this year
Next Article TPG Rises in First Day of Trading After IPO TPG Rises in First Day of Trading After IPO

Editor's Pick

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Studying Time: 3 minutes Brooke Hogan isn’t in her dad’s will, a brand new report reveals. Regardless of years of…

By Editorial Board 4 Min Read
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion

We independently consider all really helpful services. Any services or products put…

15 Min Read
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion

We independently consider all advisable services. Any services or products put ahead…

13 Min Read

Oponion

San Jose State falls to South Florida in 5-overtime Hawaii Bowl thriller

San Jose State falls to South Florida in 5-overtime Hawaii Bowl thriller

Every of the final three years, San Jose State soccer’s…

December 25, 2024

Times Square show will go on despite virus surge, mayor says

NEW YORK — New York City…

December 30, 2021

Pleasanton lady recounts ordeal with businessman now accused of working ‘Ponzi scheme’

PLEASANTON — Sheryl Lawless spent months…

June 7, 2025

Personal sector misplaced 33,000 jobs in June, effectively beneath expectations, ADP says

Apollo chief economist Torsten Slok elaborates…

July 7, 2025

Suspect arrested in reference to threats in opposition to Texas lawmakers amid “No Kings” protest in Austin

A suspect was arrested in reference…

June 15, 2025

You Might Also Like

Microsoft joins unique T market cap membership after AI surge, becoming a member of just one different firm
Markets

Microsoft joins unique $4T market cap membership after AI surge, becoming a member of just one different firm

Angelo Zino, a CFRA Analysis senior fairness analyst, discusses the efficiency of Microsoft, Meta and the general tech sector within…

4 Min Read
Moderna plans to slash 10% of workforce as COVID shot gross sales gradual
Markets

Moderna plans to slash 10% of workforce as COVID shot gross sales gradual

Rep. Russell Fry, R-S.C., discusses the Home probe into Pfizer’s launch of COVID vaccine outcomes and extra on ‘Varney &…

3 Min Read
Figma goes public, and the CEO was a fellow at Peter Thiel’s basis
Markets

Figma goes public, and the CEO was a fellow at Peter Thiel’s basis

‘Making Money’ host Charles Payne discusses whether or not the inventory market is a coiled spring able to explode or…

5 Min Read
Zuckerberg needs to offer everybody their very own private superintelligence via Meta’s new imaginative and prescient
Markets

Zuckerberg needs to offer everybody their very own private superintelligence via Meta’s new imaginative and prescient

Meta CEO Mark Zuckerberg on Wednesday introduced the tech large will give attention to growing a private superintelligence for everybody, which…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?