Rising bond yields lead to moderate losses in stock indexes, hurting technology stocks

From Nasdaq: 2024-06-17 11:36:44

Stock indexes experienced moderate losses today, with the S&P 500 down -0.18%, Dow Jones down -0.17%, and Nasdaq 100 down -0.10%. Chip companies were hurt by rising T-note yields, weak economic reports from China showed a decline in new home prices and industrial production, impacting global growth prospects and stocks.
Citigroup raised US equities outlook to overweight and lowered European stocks to neutral, citing higher growth in the US. M&A activity boosted stocks, with Autodesk and Aaron’s seeing significant gains. The US Jun Empire manufacturing survey index beat expectations. Minneapolis Fed President discussed taking time before cutting interest rates.
Positive Q1 earnings results support stocks, with an expected climb of +7.1% y/y and 81% of S&P 500 companies beating estimates. Overseas markets are mixed, Euro Stoxx 50 up, Shanghai Composite down. Interest rates and European bond yields rose, while Eurozone Q1 labor costs were revised upwards. ECB member discussed conditions for a rate cut in September.
Autodesk, Broadcom, Corning, Aaron’s, Ollie’s Bargain Outlet, Micron Technology, and Best Buy saw gains, while chip stocks like Advanced Micro Devices and ON Semiconductors faced losses. Louisiana-Pacific and copper mining stocks like Southern Copper and Freeport McMoRan took a hit. Earnings reports expected from La-Z-Boy Inc and Lennar Corp.



Read more at Nasdaq: Higher Bond Yields Weigh on Technology Stocks