Tech shares tumble | Preparing for Biden’s infrastructure plan

Tech shares tumble | Preparing for Biden’s infrastructure plan | Higher taxes ahead?

TUE, MAR 30, 2021

EVENING BRIEF

AS OF TUE, MAR 30, 2021 • 04:36 ET

DJIA		33066.96
		-0.31%	-104.41

S&P 500		3958.55
		-0.32%	-12.54

NASDAQ		13045.39
		-0.11%	-14.25

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	119.90	-1.49	-1.23%
MSFT	231.85	-3.39	-1.44%
CSCO	51.77	-0.75	-1.43%

S&P 500
NAME	LAST	CHG	%CHG
VIAC	46.61	+1.60	+3.55%
AAPL	119.90	-1.49	-1.23%
BAC	38.99	+0.68	+1.77%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	119.90	-1.49	-1.23%
BIDU	218.23	+13.53	+6.61%
TSLA	635.62	+24.33	+3.98%

EDITOR'S NOTE

Major technology shares dragged down the broader market on Tuesday after the 10-year Treasury yield touched its highest level since January 2020.

The Dow Jones Industrial Average slipped about 100 points from a record closing high. The S&P 500 closed 0.3% lower. The Nasdaq Composite dipped 0.1% as Apple and Microsoft both fell more than 1%. The tech-heavy benchmark was down more than 1% at one point.

The yield on the 10-year Treasury note climbed 6 basis points to top 1.77% earlier Tuesday, the highest level in 14 months as Covid vaccine rollouts and anticipated infrastructure spending boosted expectations for a broad economic recovery and rising inflation.

Classic reopening plays rallied, however, after a reading on consumer confidence far exceeded expectations. The Conference Board's consumer confidence index surged in March to 109.7, its highest reading in a year. Economists polled by Dow Jones expected the index to rise to 96.8 from 90.4 in February.

American Airlines jumped 5.3%, while United Airlines popped more than 3.5%. Carnival rose 3.9%, while Norwegian Cruise Line climbed 3.8%.

President Joe Biden is expected to provide details about his infrastructure plan when he travels to Pittsburgh on Wednesday. The spending package could cost north of $3 trillion.

Wild swings could hit the market later this week when pension funds and other big investors conduct their quarter-end rebalancing. The recent jump in bond yields may set up money managers for big moves in their portfolios.