NEW YORK, Oct 5 — Wall Street ended sharply lower on Monday as investors dumped Big Tech and other growth stocks in the face of rising Treasury yields, while concerns about a potential US government debt default also fed caution.
“For Big Tech, this is a short- to medium-term thing, part of a correction process. Rates were clearly too low, due in large part to central bank policies, and now as investors anticipate those policies getting clawed back, rates are moving closer to their real value,” said Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors in Palm Beach, Florida.
Recent data showing increased consumer spending, accelerated factory activity and elevated inflation growth have fueled bets that the Federal Reserve could start tightening its accommodative monetary policy sooner than expected. Spooking investors further, St. Louis Federal Reserve Bank President James Bullard warned that inflation could remain elevated for some time.
Tesla Inc rose 0.8 per cent after the electric vehicle maker reported record quarterly deliveries that beat estimates.