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Nasdaq Index Slumped Over 2%, S&P 500 Index Fell Over 1%

Tiger Newspress2022-04-06

The Nasdaq slumped 2% on Wednesday as tech stocks extended their selloff for a second straight day on mounting concerns over aggressive actions by the Federal Reserve to fight inflation, with minutes from the central bank's March meeting on tap.

Shares of mega-cap growth companies such as Microsoft, Apple and Amazon.com tumbled between 2% and 5%, dragging down the Nasdaq and the S&P 500.

High-growth stocks, whose valuations stand to be pressured by higher bond yields, bore the brunt as the benchmark 10-year yield hit a three-year high.

Fed Governor Lael Brainard said on Tuesday she expected a combination of interest rate hikes and a rapid balance sheet runoff, sparking losses on Wall Street.

"The pre-earnings rally has now been somewhat cut short due to surging yields and a very strong dollar," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"The Fed minutes today will likely show an even more hawkish attitude by the Fed members. I think they'll point to a half-a-percent rise next month."

The Federal Open Market Committee's minutes, set to be released at 2 p.m. ET, could indicate how fast and how far policymakers will proceed in trimming several trillion dollars from the stash of assets purchased to stabilize financial markets through the pandemic.

While estimates of the impact vary, Fed Chair Jerome Powell after the March meeting said the reductions might have the same effect as an additional quarter-point increase in short-term rate.

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Comment110

  • Jiahuihui
    ·2022-04-07
    [Miser] 
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  • Bspn
    ·2022-04-07
    Ok
    Reply
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  • SCLIEW
    ·2022-04-07
    666
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  • Looyusooi
    ·2022-04-07
    Ok
    Reply
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  • Goodmeng
    ·2022-04-07
    Great
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  • HTChin
    ·2022-04-07
    The sell off is just an excuse in reaction to rising Rates, the big tech companies will still make money and don't bankrupt just because of rising rates. 
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  • DingDang
    ·2022-04-07
    Buy!!
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  • PearlynCSY
    ·2022-04-07
    Inflation has become one of 2022's biggest economic stories in many countries as a confluence of global events is placing upward pressure on prices. In the US, inflation rate is at its highest in 4 decades, with its CPI reaching 7.9% YOY in Feb. The war between Russia and Ukraine could not have come at a worse time: Energy prices in particular have risen sharply over the past year and the conflict has pushed prices up even higher, with Brent crude hitting $139 last month before stabilising above $100.They are even talking about the return of stagflation, which the world has not seen since the 1970s’ oil shock. I expect the economic and financial challenges to get worse before they get better.
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  • TinPLJ
    ·2022-04-07
    Oh oh
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  • 339742f5
    ·2022-04-07
    Nice
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  • hktiigeracct
    ·2022-04-07
    Ok
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  • dception
    ·2022-04-07
    [What] 
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  • andrew123
    ·2022-04-07
    Like 
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  • Cedric77
    ·2022-04-07
    Market is full of uncertainty! FOMO?? The stock that you long for dipped?? DCA (Dollar Cost Avg). Safer way to invest. 
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  • J.G
    ·2022-04-07
    Wa jialet
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  • 陈河马
    ·2022-04-07
    Wow
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  • StingWolf
    ·2022-04-07
    Not positive news. 
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  • Rabbit63
    ·2022-04-07
    Pls like
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  • themonkey
    ·2022-04-07
    ok
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  • WH the great
    ·2022-04-07
    Not everyday share index going up. 😁
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