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Business News/ Markets / Stock Markets/  Wall St update: Nasdaq tumbles over 280 pts at open as FAANG stocks deepen rout

Wall St update: Nasdaq tumbles over 280 pts at open as FAANG stocks deepen rout

Since the start of May, the 10-member NYSE FANG+TM index , which includes the core FAANG group of stocks alongside Tesla, Alibaba, and Twitter Inc, have shed more than $442 billion in market value as of May 10

A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City, U.S.,

Wall Street's main indexes opened sharply lower and the Nasdaq shed 2% on Tuesday, weighed down by technology-related stocks with lofty valuations on worries over inflation.

The Nasdaq Composite dropped 286.0 points, or 2.13%, to 13115.854 at the opening bell.

The Dow Jones Industrial Average fell 170.1 points, or 0.49%, at the open to 34,572.74 and the S&P 500 fell 38.1 points, or 0.91%, at the open to 4,150.34​.

Since the start of May, the 10-member NYSE FANG+TM index , which includes the core FAANG group of stocks alongside Tesla, Alibaba, and Twitter Inc, have shed more than $442 billion in market value as of May 10.

The yield on benchmark U.S. 10-year Treasury note ticked up to 1.604% ahead of consumer price index report on Wednesday, with investors fearing a strong reading could prompt the Federal Reserve to alter its ultra loose monetary policy.

"We've seen a spike in commodity prices, economic data has been very strong and an uptick in rates has really pressured the technology complex," said Dan Eye, head of asset allocation and equity research, Fort Pitt Capital Group.

"If you're valuing a high-growth company based on its earnings ten years out, those earnings into the future are worth a lot less today at higher inflation levels."

In a late session reversal on Monday, inflation jitters drove investors away from growth stocks to cyclicals, which benefit the most as the economy reopens, resulting in the S&P 500 logging its worst day in nearly eight weeks.

At 8:29 a.m. ET, Dow e-minis were down 297 points, or 0.86%, S&P 500 e-minis were down 53.75 points, or 1.28%, and Nasdaq 100 e-minis were down 265 points, or 1.98%.

Simon Property Group Inc fell 3.7% after the U.S. mall operator said it does not expect a return to 2019 occupancy levels until next year or 2023, as it looks to play hardball in rent negotiations with tenants.

L Brands Inc fell 3% after the company said it plans to split itself into two publicly traded companies, Bath & Body Works and Victoria's Secret, after the retailer decided against a sale of the lingerie brand.

Energy stocks including Occidental Petroleum Corp, APA Corp and Chevron Corp fell between 1.3% and 4% as oil prices declines sharply.

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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