The exception was the The Dow Jones Industrial Average rose 133.37.80 points, or 0.1%, to 33,241.73, while the S&P 500 fell 415.40 points, or 0.4%, to 3,829.42 units. The Nasdaq Composite lost 143.60 points, or 1.4%, to 10,354.26.
Growth stocks dragged the technology-dominated Nasdaq lower. The S&P 500 also fell into negative territory, while the Dow, driven by value stocks, ended slightly in the green.
“Higher (Treasury) yields are putting pressure on growth stocks and on the other hand, industrials, utilities and energy are outperforming,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.
“Money is moving out of growth areas and making its way to the value side, which is a microcosm of what we’ve seen all year.”
Tesla shares plunged after Reuters reported that the electric vehicle maker plans to run a reduced production schedule at its Shanghai plant until January. The stock has lost about 70% of its value this year.
The shares listed in the United States of Chinese companies including JD.Com Inc, Alibaba Group Holding Ltd and Pinduoduo Inc posted sharp gains after China said it would no longer require travelers to enter quarantine from January 8.
Rising Treasury yields put interest rate-sensitive growth stocks under pressure, a situation that has been recurring in 2022. Over the year, growth stocks have plunged more than 30% compared with the drop in value of around 7.5% over the same period.
With just three trading days left in 2022, all three US indices are on track to post their biggest annual loss since 2008, the nadir of the global financial crisis.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
