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Stocks Tumble on Higher Bond Yields and Chip Stock Weakness


Published on 2025-03-06 10:41:11 - Barchart
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  • The S&P 500 Index ($SPX) (SPY) today is down -1.46%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -1.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.92%. March E-mini S&P futures (ESH25) are down -1.

The article from MSN Money discusses a significant downturn in the U.S. stock market, driven by several key factors. Rising bond yields, particularly the 10-year Treasury yield reaching 4.3%, have made bonds more attractive to investors, pulling money away from stocks. Additionally, there was notable weakness in the semiconductor sector, with companies like Advanced Micro Devices (AMD) and Qualcomm experiencing sharp declines after disappointing earnings forecasts. This sector's downturn was exacerbated by concerns over a potential oversupply in the chip market. The broader market indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq all saw declines, with the tech-heavy Nasdaq suffering the most due to its sensitivity to interest rate changes. The article also mentions that these market movements are influenced by expectations of sustained high interest rates from the Federal Reserve, aimed at controlling inflation, which in turn affects stock valuations and investor sentiment.

Read the Full Barchart Article at:
[ https://www.msn.com/en-us/money/markets/stocks-tumble-on-higher-bond-yields-and-chip-stock-weakness/ar-AA1AnTAE ]