Stock Markets Slide as Treasury Yields Rise and Tech Stocks Falter
U.S. stock markets declined as rising Treasury yields and technology sector weakness pressured indices. The S&P 500 fell and the Nasdaq slipped amid concerns over oil prices and bond yields, with memory chip stocks particularly hard hit after concerning guidance on manufacturing capacity.
Market Declines Amid Rising Yields
The Nasdaq Composite and the S&P 500 fell on Monday, bogged down by declines in technology, as traders monitored oil prices and bond yields while awaiting further developments with the conflict in the Middle East. The broad market benchmark dropped 0.07% to end at 7,403.05, while the tech-heavy Nasdaq slid 0.51% and closed at 26,090.73. It was the second straight day of declines for both indexes.
Memory Chip Sector Under Pressure
Seagate led a selloff in the memory chip space after the CEO said during a JPMorgan conference that new factories would "take too long." Seagate fell nearly 7% and dragged peer Micron Technology lower by almost 6%. The comment exacerbated concerns that the memory chip industry doesn't have the capacity to meet soaring demand.
Fed Outlook and Inflation Concerns
Ahead of a meeting of finance ministers from the Group of Seven developed economies in Paris on Monday, a senior European official says the situation in the Middle East has highlighted how exposed the interconnected global economy is to external shocks. "Opening the Strait of Hormuz and bringing the conflict to a lasting end are of the utmost importance in mitigating the impact on the economy," Eurogroup President Kyriakos Pierrakakis said in a statement.