The Nasdaq tumbled more than 2.5% on this morning after US weaker-than-expected consumer confidence data, while technology heavyweights took a hit from a surge in bond yields on expectations of higher interest rates and a rising inflation.
Thus, at 11:56 a.m. ET, the Dow Jones Industrial Average was down 489 points, or 1.40%, at 34,380, the S&P 500 was down 83 points, or 1.87%, at 4,360, and the Nasdaq Composite was down 377 points, or 2.52%, at 14,592.
U.S. consumer confidence unexpectedly fell to its lowest since February this month.
In fact the Conference Board September Consumer Confidence Index came in at 109.3, versus an expected 115.3. The Consumer Present Situation Index was 143.4, versus the last reading at 147.3, and the Consumer Expectations Index registered 86.6, compared with the previous number of 91.4. Delta variant concerns and rising prices for a number of goods, particularly energies, appear to be taking a toll on consumer attitudes and spending.
The reading, coupled with a rising trade deficit and an expected decline in vehicle sales, brewed fresh concerns about the state of consumption in the country, which is a key driver of economic growth.
Meantime, the two-year U.S. Treasury yield surged to 18-month highs, weighing on commodities ag and shares of high-growth companies whose values are closely linked to future earnings.
