While Tuesday’s near-2% drop in the NASDAQ 100 has been pinned on the rise in US government bond yields that followed Treasury Secretary Yellen’s comments about the potential need for tighter Fed policy, the tech-heavy stock market index had already been faltering in the days before she spoke. In our view, a more likely culprit for the retreat in the index was profit-taking after a recent strong run and the release last week of some consensus-beating earnings results for Q1. Our sense is that it won’t mark the start of a deeper, broad-based sell-off in the stock market, even as there is a further rotation away from the tech sector partly in response to even higher Treasury yields.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services