Stock market today: tech stocks tumble as U.S. political pressures weigh in


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Investors received another update on the China Evergrande saga on Monday.

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The stock market was down again on Monday, without much bad news. After a difficult September, several risks remain for the markets in October, which can also be a historically bad month for stocks.

In the afternoon discussions, the

Dow Jones Industrial Average

was down 446 points, or 1.3%, after the index rose 482 points on Friday to close at 34,326.

S&P 500

and the

Nasdaq Composite

fell by 1.7% and 2.6% respectively.

Technology stocks were particularly hard hit by the rise in bond yields. Rising yields often mean that investors expect inflation and strong economic demand in the future. The 10-year Treasury yield climbed to 1.5% from 1.48%.

Other areas of the market were not declining as much. The

Equal Weight Invesco S&P 500

The exchange-traded fund (RSP), which weights every holding in the index equally and reflects the magnitude of rising or falling stocks, fell only 0.8%.

In general, the risks still have not gone away. Supply chain constraints prevent some companies from meeting their sales targets, while the associated higher costs weigh on profit margins. Higher corporate taxes could be on the way. Additionally, bond yields should continue to rise, making future earnings less valuable.

As for the S&P 500, October can be a tough month, especially after a tough September. When the index drops in September, the S&P 500 is only up 54% from October historically, according to Bank of America, with an average decline of 0.4%. The bank said October was also one of the most volatile months.

Meanwhile, the S&P 500 is down just over 5% from its all-time high reached on September 2. Technically, a correction corresponds to a decrease of 10%. “I don’t think we’ve seen the bottom in equities yet,” wrote Jay Pestrichelli, CEO of ZEGA Financial. “While September’s stock declines were uncomfortable, they were a far cry from a traditional 10% market correction.”

The S&P 500 fell below the 4,300 level on Monday, a somewhat troubling sign. Buyers had stepped in last month when the index was slightly above that level, but a sharp move below could mean the index is poised to drop to 4,220, which would mark a 7% drop from at the highest historical index.

Analysts also noted that the deadline for the US debt ceiling in December and the continued political dispute over the $ 1,000 billion infrastructure bill and the $ 3.5 trillion reconciliation plan had confused tracks.

More: Democrats Still Negotiating $ 3.5 Trillion Reconciliation Bill

Overseas, Hong Kong

Hang Seng Index

fell 2.2% as mainland Chinese markets were closed for holidays. The pan-European

Stoxx 600

was down 0.5%.

Hong Kong rocked as shares of heavily indebted real estate developer

China Evergrande

(ticker: 3333.HK) were suspended “pending publication by the Company of an announcement containing inside information on a major transaction”. Reports have circulated in Chinese state media that a rival,

Hopson development

would buy a major Evergrande unit. Trading in the Hopson share (0754.HK) has also been halted.

Read also : The stock market has set aside Evergrande’s concerns for China. Why this is a mistake.

Here are nine actions in motion on Monday:


(MRNA) and


(NVAX) saw their shares fall 6.4% and 2.6%, respectively, after the announcement that

Johnson & johnson

(JNJ) is seeking approval from the Food and Drug Administration for its Covid-19 booster injection. Also,


(MRK) said on Friday that his oral treatment for Covid-19 was effective in reducing the risk of hospitalization. Merck shares rose 1.6%.

Therapeutic sage

(SAGE) and


(BIIB) saw its shares drop 2% and 1%, respectively, even after companies announced the effectiveness of a new treatment for depression.

You’re here

(TSLA) rose 0.8% after the electric vehicle group announced a record quarter on Saturday with shipments up 70% from a year ago.

Akamai Technologies

The stock (AKAM) fell 2.7% after being downgraded to the sector weighting from overweighting to KeyBanc Capital Markets.

From the Pont de Nemours

(DD) stock gained 1.6% after being overweight Neutral at JPMorgan.

Adidas slipped 2.3% (ADS.Germany), after the sportswear giant’s shares were lowered to Underperform by Bank of America.

Write to Jacob Sonenshine at


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