Tech shares hammered a second day as yields climb
TSX could be a safe haven against U.S. indices over medium-term: Fairlead's Stockton
Technology shares sold off for a second day as the jump in bond yields raised concerns that valuations for high-flying stocks got too high.
The Nasdaq 100 slumped almost 2 per cent in early trading as the tech-heavy gauge headed to its longest losing streak since 2019. Tesla Inc. dropped 5 per cent as investors continued to punish stocks that have led the rally from the depths of the pandemic a year ago. Cyclical shares set to benefit from the end of pandemic lockdowns outperformed, limiting losses for the Dow Jones Industrial Average and S&P 500 Index. A similar rotation was underway in European stocks.
So-called growth shares are having their worst month against value counterparts in more than two decades as vaccination campaigns gather pace and bond yields climb. Bets on faster growth and higher rates have pushed the gap between 5- and 30-year yields to the highest level in more than six years.
Investors are growing concerned that broad equity benchmarks have already priced in …
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