Nasdaq Loses Big as Bond Yields Continue to Surge

Oil prices suffered their worst single-day drop since September

Assistant Editor
Mar 18, 2021 at 4:29 PM
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Stocks ended the day sharply lower, as surging bond yields stoked investor fears of equity valuations and forced them to ditch growth-focused stocks. The 10-year Treasury yield rose above 1.75% at its session peak -- its highest level since January 2020 -- while the U.S. Federal Reserve said it would allow inflation to run hotter than usual in order to ensure a smooth economic recovery.

As a result, the Dow tumbled from a new intraday record high, while the tech-laden Nasdaq took a beating and snapped its three-day win streak. Apple (AAPL), Alphabet (GOOGL), and Microsoft (MSFT) all lost at least 2%, while sector behemoth Tesla tumbled over 5%. Nevertheless, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), fell to an annual low earlier today before pivoting higher at the close. 

Continue reading for more on today's market, including:

  • Coherent stock surged following a massive buyout bid.
  • After logging a record high, what's left for DECK?
  • Plus, why Nikola stock plummeted; two-year highs for SIG; and Peloton stock tripped up.

The Dow Jones Industrial Average (DJI - 32,862.30) fell 153.1 points, or 0.5% for the day. UnitedHealth (UNH) topped the list of Dow components with a 2.8% rise, while Chevron (CVX) fell 3.5% to pace the laggards.

Meanwhile, the S&P 500 Index (SPX - 3,915.46) lost 58.7 points, or 1.5% for the day. The Nasdaq Composite (IXIC - 13,116.17) shed 409 points, or 3% for the day.

Lastly, the Cboe Volatility Index (VIX - 21.58) rose 2.4 points, or 12.2% for the day.

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  1.  Retail stores are seizing the moment, and planning to open more stores than they close for the first time in years. (CNBC)
  2. After reports of blood clot side effects came to light, Europe's drug regulator has found AstraZeneca's Covid-19 vaccine "safe and effective." (MarketWatch)
  3. Nikola stock spiraled after a strategic partner cut its stake.
  4. Stellar earnings sent SIG to two-year highs.
  5. This stay-at-home staple fell despite seemingly upbeat news.

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Oil Logs Fifth Consecutive Loss

Oil prices fell for the fifth-straight session, locking in their worst day since September. A stronger U.S. dollar, in conjunction with increased inventory and the persistence of the pandemic continue to weigh on black gold even as economic recovery efforts get underway. As a result, April-dated crude shed $4.87, or 7.5%, to settle at $59.73 per barrel.

Gold prices fell as well, as U.S. bond yields made a break higher and a firmer dollar sent investors away from the yellow metal. In response, April-dated gold shed $5.40 cents, or 0.4%, to settle at $1,732.50 an ounce.  

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