Collapse of tech sector weighs on stocks; GameStop’s spinning shares jump 41% |
Wall Street mixed up as tech offsets win
NEW YORK – Major U.S. stock indexes closed mostly lower on March 8, as a further rise in bond yields helped boost sales at tech companies.
The S&P 500 fell 0.5% after rising 1% earlier. Due to their enormous size, declines in Apple, parent company Google, and other big tech stocks helped push the index into the red, even though more stocks rose than fell in the red. ‘benchmark.
The sell-off, which picked up near the end of the day, left the high-tech Nasdaq composite down 10.5% from the all-time high it reached on February 12. A drop of 10% or more from a recent high is known on the wall. Street as “correction”.
Bond yields have increased significantly. The yield on the 10-year Treasury bill climbed to 1.6% from 1.55% on Friday night.
Yields rose on rising expectations for the economy to grow and the inflation that could accompany it. Higher yields put downward pressure on stocks in general, in part because they can divert dollars that had been directed at the stock market to bonds instead. This makes investors less willing to pay high prices for stocks, especially those that seem more expensive, like tech stocks.
Investors can expect more market volatility as long as bond yields continue to rise, said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I think it’s something that’s going to be temporary.”
Still, she said, the pullback in tech stocks offers an attractive entry point for investors to acquire stocks of some big names, like Apple and Amazon, at a better price.
“There are some strong downside buying opportunities here,” Jablonski said.
Meme fav GameStop eyes digital change
NEW YORK – GameStop took a step towards a more digital future on Monday, appointing an activist investor to lead the company’s efforts to further promote its business online.
The action, which became the focus of federal regulators after online traders challenged more institutional investors and sent swirling stocks wildly, jumped 12% early in the session and ended the session. 41% to $ 194.50.
Ryan Cohen, co-founder of online pet supply company Chewy, will chair the company’s new strategic planning and capital allocation committee.
Cohen took a huge stake in GameStop before the online frenzy over the company’s stock began in January. He was seen as an agent of change and someone who knows how to make a traditional business more agile through technology.
Cohen won a seat on GameStop’s board earlier this year, about a month after the company revealed a drop in third-quarter sales. He has since lobbied to take GameStop’s attention away from stores and towards a more online existence.
A share of GameStop that could be had for less than $ 20 at the start of the year, soared north of $ 480 at the end of January.
GameStop also said on Monday it has appointed a chief technology officer, hired executives to lead its customer service and e-commerce functions and started looking for a new chief financial officer with experience in technology or e-commerce.
Airline Stocks Rise, Americans Will Pay Off Loan
FORT WORTH, Texas – Air travel hasn’t recovered from the pandemic, but a few other people are flying. That – and the rollout of new vaccines – helped push up airline stocks on Monday.
Fitch Ratings said the rollout of multiple COVID-19 vaccines increases the likelihood of what it calls a significant rebound in air travel from 2021.
Meanwhile, American Airlines says it plans to raise $ 7.5 billion by borrowing against its frequent flyer program and using the funds to pay off a federal loan it got at the start of the pandemic. Fitch says this means Americans won’t have to keep burning money for an extended period.
Saudi oil site attack fuels crude prices
BANGKOK – Oil prices rose on March 8 as Saudi oil facilities were the target of drone strikes just days after the world’s largest crude-exporting countries said they would not increase production .
Brent, the international standard, has exceeded $ 70 a barrel for the first time since the pandemic sent prices plunging last year. US crude is also reaching pre-pandemic levels.
Crude prices have jumped more than 30% this year as massive vaccination campaigns gain momentum, potentially signaling the start of the end of a global pandemic. The attacks in Saudi Arabia follow a devastating winter freeze in Texas and other parts of the southern United States last month, which halted production of about 4 million barrels per day of U.S. oil.
Yellen: Women face barriers in jobs in the economy
WASHINGTON – Janet Yellen, the first woman to head the Federal Reserve and the US Treasury Department, says women seeking to pursue careers in economics face a number of obstacles ranging from how economics courses start to be taught too aggressive questions in university seminars.
Yellen was attending an event with Kristalena Georgieva, the second woman to head the International Monetary Fund. The two spoke at the event recognizing International Women’s Day.