Investing.com - stock indices in the United States opened with a sharp decline, again caused by the fall of the shares of technological companies, since concerns about the possible termination of the "light money" policies of the Federal Reserve System provoked the fixation of profits on some of the most expensive shares of the country.
By 09:40 East time (14:40 GMT), the NASDAQ Composite index, which rose more than twice as compared with a minimum after a pandemic before the start of the recent sale, fell by 395 points, or 2.9%, which was added to the loss Approximately 2.5% on Monday. The S & P 500 index fell by 1.1%, while the Dow Jones index, where there is a large concentration of "valuable" shares, fell only by 0.5%, or 154 points, to 31.368 points.
These events occurred at the time when the head of the US Federal Reserve System by Jerome Powell is preparing to start a two-day report in the Congress on the state of the economy. Concerns about the fact that the combination of a soft fiscal and monetary policy can provoke inflation, led to the fact that the yield on 10- and 30-year bonds reached the highest level more than a year before his speech, and this ensures that each Powell's word will be studied carefully than usual.
The most dramatic changes occurred in the automotive sector: TESLA shares (NASDAQ: TSLA), whose assessment has long been at the level, which is difficult to justify with the help of traditional indicators, fell by 11%. The sale has two catalysts: first, the price of Bitcoin fell by about 20% after the past weekends. Although it is unlikely to have any significant impact on the finance of Tesla, its CEO Ilon Mask to some extent tied an assessment of his company to cryptocurrency, converting $ 1.5 billion from the available cash in Bitcoins.
The second arrival fixation catalyst was the official announcement of the merger of Lucid Motors with Churchill Capital IV Corp (NYSE: CCIV) - SPAC, created by the former head of the Citigroup investment bank (NYSE: C) by Michael Klein. CHURCHILL shares fell by 40%.
The fears of stronger competition also affected the shares of the Chinese manufacturer of electromotivers NiO (NYSE: NIO), which lost more than 10% at the beginning of trading.
Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) were also suggested, losing 3.4%, 2.0% and 1.7%, respectively, whereas Shopify shares (NYSE: Shop ) Dropped by 7.8% after the announcement of the placement of 1.18 million new shares.
Shares Home DEPOT (NYSE: HD) fell by 5.9%, and TheRealReal shares (NASDAQ: REAL) collapsed by more than 10% after disappointing data on revenues for the quarter. Home Depot stated that it could not be confident in the continuation of the boom on the landscaping of housing, which was observed during a pandemic, until 2021.
Author Jeffrey Smith
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