The Nasdaq index fell on Friday as growth stocks came under pressure after Treasury yields extended gains, while shares of ride-hailing firm Lyft plunged following a downbeat profit forecast.
The Nasdaq eyed its first weekly fall this year, while the S&P 500 and the Dow were set to clock declines for a week dominated by hawkish commentary from U.S. Federal Reserve officials and earnings reports from more than half of the S&P 500 (.SPX) constituents.
Yields on the benchmark 10-year Treasury note rose to their highest in more than a month following an auction of 30-year bonds that saw weak demand.
Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Tesla Inc (TSLA.O) were down between 0.6% and 4.4%. Rising Treasury yields put valuations of growth stocks under strain.
“If you get 4% in Treasuries risk free, why would you risk any money in the stock market?” said Adam Sarhan, chief executive at 50 Park Investments. “It definitely impacts the NASDAQ 100 type stock because they’re very sensitive to interest rates.”
This report’s information was first seen on REUTERS; to read more, click this link.
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