Sellers were in back in the stock market in spades Tuesday as Wall Street grew concerned about falling bond yields and and an economic slowdown. In today’s stock market, JPMorgan (JPM) took a hit in the Dow Jones, down nearly 5%. Big decliners in the Nasdaq 100 included semiconductor stocks like Applied Materials (AMAT), Lam Research (LRCX) and Micron Technology (MU). (For updates on this story and other market coverage, visit the Stock Market Today.)
In late-afternoon trading, the Nasdaq composite was down 3%, the S&P 500 lost 2.5% and the Dow Jones industrial average swooned 2.5%. Small caps took the hardest hit as the Russell 2000 slumped 3.3%. Volume on the NYSE and Nasdaq was tracking slightly lower than Monday’s levels but seemed to be picking up the pace.
In today’s stock market, Apple (AAPL) was another big decliner in the Dow Jones, down nearly 4%, after HSBC downgraded shares to hold with a 200 price target.
After gapping above its 50-day moving average Monday, the Philadelphia Semiconductor index plunged below the line Tuesday, falling nearly 4%.
Innovator IBD 50 ETF (FFTY) fell mostly in line with the Nasdaq. After eight straight gains, IBD 50 stock BioTelemetry (BEAT) plunged around 7%. HealthEquity (HQY) was another big decliner in the IBD 50, down more than 5%, ahead of its earnings report after the close.
Today’s Stock Market: Bonds Rally
In economic news, the IBD/TIPP Economic Index dipped to 52.6 in early December, matching its April low. Meanwhile, the spread between the 10-year yield and 2-year yield continued to narrow. The 10-year Treasury yield was recently trading around 2.91%, with the the 2-year at 2.80%. Money flowing into bonds hurt the cause of financial stocks. IBD’s Banks-Super Regional group, which includes stocks like Fifth Third Bancorp (FITB), Regions Financial (RF) and SVB Financial (SIVB), was down 5% in afternoon trading.
Heavy-volume gainers in today’s stock market included AutoZone (AZO). The auto parts retailer gapped up to a new high after earnings and same-store sales topped expectations.
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