ASX set to slide as tech stocks send Wall Street lower
Declines in technology stocks are dragging the broader market lower on Tuesday (US time) as investors remain increasingly focused on a big tick up in bond yields and what it means for the overall market.
The S&P 500 index was down as much as 1.8 per cent early in the day before paring the worst of its losses. Investors were boosted by Fed chief Jerome Powell’s testimony to Congress, where he signalled that the central bank was nowhere close to pulling back on its support for the U.S. economy.
“The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” he told the Senate Banking Committee Tuesday.
“While we should not underestimate the challenges we currently face, developments point to an improved outlook for later this year,” Powell said. “In particular, ongoing progress in vaccinations should help speed the return to normal activities.”
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