You are here

US: Nasdaq falls again amid angst over higher interest rates


[NEW YORK] The tech-rich Nasdaq tumbled for the third straight session Monday as worries about higher interest rates and lingering US-China trade tensions weighed on sentiment.

The Nasdaq composite Index finished 0.7 per cent lower at 7,735.82.

The Dow Jones Industrial Average edged higher by 0.2 per cent to 26,486.78, while the broad-based S&P 500 slipped less than 0.1 per cent to 2,884.43.

The mixed result came after US stocks finished meekly last week as the yield on the 10-year Treasury bond pushed further above three per cent.

Market voices on:

The Treasury market was closed Monday in observance of the Columbus Day holiday, but remained on the minds of many investors. Analysts said volume was low because of the holiday, with the federal government and many schools closed, which can cause increased price volatility.

"There is some nervous chatter about how quickly rates moved last week and how they might be entering a new domain that could create a real headwind for this bull market," said analyst Patrick O'Hare.

"That consideration has kept the buy-the-dip crowd at bay for the time being."

Analysts also cited a testy public interaction between Chinese Foreign Minister Wang Yi and US Secretary of State Mike Pompeo in Beijing as a reminder that relations between the world's top two economies remain brittle.

Among individual companies, General Electric continued its upswing following last week's appointment of a new chief executive, winning 3.2 per cent after reaching a deal to sell equity in a series of energy ventures to Apollo Global Management for about US$1 billion.

Tesla Motors continued to slide, falling 4.4 per cent following the latest controversy surrounding chief executive Elon Musk, who mocked the US Securities and Exchange Commission last week on Twitter after reaching a settlement with the agency on fraud charges.

Consumer-oriented shares had a good day, with Dow members Walmart winning 1.5 per cent, Walgreens Boots 2.3 per cent and Coca-Cola 1.3 per cent.