Shares fall, technology stocks increase losses

US stocks fell on Wednesday as technology stocks extended the fall from the previous trading day.

The S&P 500 drove lower to retreat further from Tuesday’s record high intraday. The Nasdaq also fell, outperforming the other two major stock indices. apple (AAPL) shares stabilized after a fall a day earlier, pulling the stock back after reaching a market value of $ 3 trillion for the first time ever at the beginning of the week.

Investors also digested fresh positive economic data on Wednesday morning, as private wage gains virtually exceeded December estimates. The ADP said on Wednesday that employers in the private sector added 807,000 jobs back over the last month of November, nearly doubling expectations as job growth picked up to help address some labor shortages.

In the first few trading days of the new year, investors have accumulated in cyclical areas of the market, where shares in companies are considered to be the biggest benefits of an intensified economic recovery and rising interest rates that perform better. The energy, finance and industry sectors outperformed the S&P 500 on Tuesday, and the Dow Jones Industrial Average, which is heavily composed of cyclical stocks, rose more than 200 points to set a record high.

Government interest rates stabilized after moving significantly higher on Monday and Tuesday, which had put pressure on technology and growth stocks, which were valued high on future earnings potential. The benchmark 10-year interest rate jumped further 1.6% to reach its highest level since November, although it remained low on a historical basis.

“[Yields are] are moving significantly higher today or in the very recent past, but they have been stubbornly lower when compared to what the inflationary talk has been, says Scott Kimball, Co-Head of US Fixed Income for BMO Global Asset Management, to Yahoo Finance Live on Tuesday. “There has been a lot of discussion about runaway inflation, where the Fed is behind the curve. All of this would result in a long end – the 10, 20, 30-year part of the yield curve – which is much steeper or significantly higher even in absolute terms. , than it is right now. ”

Meanwhile, Eddie Ghabour, Eddie Ghabour, founder of the KeyAdvisors Group and author of “Common Sense Bull,” told Yahoo Finance he expected the rise in rates so far this week to eventually prove to be a “head fake”.

“This increase in rates does not worry me at all. I think it will be short-lived,” he said. “The bigger concern I have right now is the fact that many investors are still carrying a huge amount of risk heading into a year that will be unprecedented when the Fed is tightened during a slowdown. That’s usually not a good recipe. on high-risk assets.

9:30 AM ET: Shares open lower

Here’s where the markets traded right after opening time:

  • S&P 500 (^ GSPC): -6.35 (-0.13%) to 4,787.19

  • Dow (^ DJI): -10.76 (-0.03%) to 36.788.89

  • Nasdaq (^ IXIC): -69.27 (-0.47%) to 15,548.99

  • raw (CL = F): + $ 0.95 (+ 1.23%) to $ 77.94 per. barrel

  • gold (GC = F): + $ 13.30 (+ 0.73%) to $ 1,287.90 pr. ounce

  • 10-year Treasury (^ TNX): -1.7 bps to give 1.649%

8:22 ET: Private wages grew much more than expected in December: ADP

Employers in the private sector added far more jobs back than expected in the last month of 2021, suggesting that at least some widespread vacancies were filled throughout the economy.

The ADP said Wednesday that private wages grew by 807,000 in December. This was almost double the expected 410,000 consensus economists, according to Bloomberg data. Employers had brought 505,000 jobs back in November, according to ADP’s revised estimate for that month.

The ADP report serves as a measure that sets expectations for the “official” government job report released Friday by the Labor Department. However, the ADP’s print during the pandemic has served as an imperfect indicator of what to expect from the Ministry of Labor’s reports. For three of the last four months, ADP’s print exceeded the Ministry of Labor’s payroll, which last came in at a disappointing 210,000 for November.

7:08 AM Wednesday: Stock futures point to a lower opening

Here is where the markets traded prior to the opening bell:

  • S&P 500 futures (ES = F): -3.25 points (-0.07%), to 4,781.00

  • Dow futures (ÅM = F): -1 points (-0.00%) to 36,674.00

  • Nasdaq futures (NQ = F): -56.5 points (-0.35%) to 16,219.25

  • raw (CL = F): -0.04 USD (-0.05%) to 766.95 USD per. barrel

  • gold (GC = F): + $ 4.70 (+ 0.26%) to $ 1,819.30 per. ounce

  • 10-year Treasury (^ TNX): -1.5 bps to give 1.651%

18:15 ET Tuesday: Stock futures changed a bit

Here’s where the markets traded Tuesday night:

  • S&P 500 futures (ES = F): -0.75 points (-0.02%) to 4,783.50

  • Dow futures (ÅM = F): -12 points (-0.03%) to 36,663.00

  • Nasdaq futures (NQ = F): -9.5 points (-0.06%) to 16,266.25

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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