The Dow Jones continued its winning streak overnight, adding 0.2% and outperforming both the S&P 500 and Nasdaq. The tech-heavy indices were down 0.3% and 0.5%, respectively, as a spike in bond yields sent the 10-year to over 1.5% for the first time since June.
The sell-off was broad-based with the likes of PayPal (NASDAQ: PYPL) and DocuSign (NASDAQ: DOCU) down 2% and 3%, respectively.
Energy & financials rally
It was all about the cyclicals, however, as markets readied for an oil price boom with the energy price and growing shortages boosting stocks. Power supply constraints appear to be a potential drag on growth with shortages of oil and gas expanding across Europe and the US.
Meanwhile, the financial sector outperformed as high interest rates tend to improve profitability for banks. Goldman Sachs (NYSE: GS) shares advanced 2.3%.
Facebook halts Instagram for kids, Evergrande defaults
Facebook (NASDAQ: FB) shares were slightly higher but impacted by the decision to pause the rollout of ‘Instagram for kids’ given recent concerns around the platform’s impact on mental health.
Elsewhere, China’s Evergrande defaulted on a series of high yielding managed fund investments, whilst bearish New York Fed President Williams raised concerns about a lack of inflation coming down the pipeline.
Featured: Anirban Mahanti’s take on Evergrande on
US stock market movers
Here’s how other popular US stocks performed overnight.
- Wayfair (NYSE: W) up 3.9%
- Alibaba (NYSE: BABA) up 3.5%
- Beyond Meat (NASDAQ: BYND) up 3.4%
- Atlassian (NASDAQ: TEAM) down 5.3%
- MercadoLibre (NASDAQ: MELI) down 5.4%
- Garmin (NASDAQ: GRMN) down 5.8%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) has opened lower this morning. To get your morning recap, check out my ASX 200 morning report.
