{"id":1653394,"date":"2022-09-22T12:49:50","date_gmt":"2022-09-22T16:49:50","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1653394"},"modified":"2022-09-22T12:50:53","modified_gmt":"2022-09-22T16:50:53","slug":"tech-financial-stocks-drag-wall-street-lower-as-growth-concerns-mount","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tech-financial-stocks-drag-wall-street-lower-as-growth-concerns-mount\/","title":{"rendered":"Tech, financial stocks drag Wall Street lower as growth concerns mount"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftech-financial-stocks-drag-wall-street-lower-as-growth-concerns-mount%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1653394&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Devik Jain and Ankika Biswas<\/p>\n<p>(Reuters) \u2013     Technology and financial stocks pulled Wall Street\u2019s main indexes lower for a third straight session on Thursday, as investors worried that the Federal Reserve\u2019s aggressive approach to rein in inflation could trigger a recession.<\/p>\n<p>The Fed lifted rates by an expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates than markets had priced in, fuelling fears of further volatility in stock and bond trading in a year that has already seen bear markets in both asset classes.<\/p>\n<p>\u201cGoing forward, the market is going to be hypersensitive to any sort of Fed comments and data coming up. I would expect more volatility as the market digests them, but at the same time we\u2019re cautiously optimistic,\u201d said Brian Klimke, director of investment research at Cetera Financial Group.<\/p>\n<p>\u201cValuations are a lot better than they were at the start of the year, earnings estimates have been lowered that makes it easier to beat. So, a lot of the bad news is factored in right now \u2026 we are creating a market where there are potential upside surprises now.\u201d<\/p>\n<p>As of Friday, the S&#038;P 500\u2019s estimated earnings growth for the third quarter is at 5%, according to Refinitiv data. Excluding the energy sector, the growth rate is at -1.7%.<\/p>\n<p>The S&#038;P 500\u2019s forward price-to-earnings ratio, a common metric for valuing stocks, is at 16.8 times earnings \u2013 far below the nearly 22 times forward P\/E that stocks commanded at the start of the year.<\/p>\n<p>GRAPHIC: S&#038;P 500 Forward PE https:\/\/fingfx.thomsonreuters.com\/gfx\/mkt\/akvezbblapr\/Pasted%20image%201663860200947.png<\/p>\n<p>Nine of the 11 major S&#038;P sectors declined, led by a drop of 2% in consumer discretionary and 1.5% in financial stocks.<\/p>\n<p>Shares of megacap technology and growth companies such as Apple Inc, Amazon.com Inc, Tesla Inc and Nvidia Corp fell between 1% and 4% as benchmark U.S. Treasury yields hit an 11-year high. [US\/]\n<p>Rising yields weigh particularly on valuations of companies in the technology sector, which have high expected future earnings and form a significant part of the market-cap weighted indexes such as the S&#038;P 500.<\/p>\n<p>The S&#038;P 500 tech sector has slumped 28% so far this year, compared with a 21.2% decline in the benchmark index.<\/p>\n<p>\u201cThe higher interest rates imposed yesterday and the more hawkish tone delivered by the Fed will weigh on stocks in general and likely more on rate-sensitive sectors,\u201d said Sam Stovall, chief investment strategist at CFRA Research.<\/p>\n<p>\u201cI definitely see the market testing the June lows and there is an increased likelihood that new lows will be set as indicated by the rise in the two-year yield, and the widening of the inversion of the two-year and 10-year yield curve.\u201d<\/p>\n<p>The S&#038;P 500 is now 3.5% away from its mid-June low, its weakest point of the year.<\/p>\n<p>At 11:55 a.m. ET, the Dow Jones Industrial Average was down 75.94 points, or 0.25%, at 30,107.84, the S&#038;P 500 was down 25.33 points, or 0.67%, at 3,764.60, and the Nasdaq Composite was down 134.38 points, or 1.20%, at 11,085.81.<\/p>\n<p>Recent dismal outlooks from companies including FedEx Corp and Ford Motor Co have also raised concerns about the health of corporate America.<\/p>\n<p>Darden Restaurants Inc slid 4% after the Olive Garden parent reported downbeat first-quarter sales.<\/p>\n<p>Eli Lilly and Co gained 3.9% after the U.S. FDA approved the company\u2019s drug Retevmo for the treatment of advanced tumor and non-small-cell lung cancers.<\/p>\n<p>Declining issues outnumbered advancers for a 5.19-to-1 ratio on the NYSE and for a 4.18-to-1 ratio on the Nasdaq.<\/p>\n<p>The S&#038;P index recorded no new 52-week high and 118 new lows, while the Nasdaq recorded 11 new highs and 592 new lows.<\/p>\n<p> (Reporting by Sruthi Shankar, Medha Singh, Devik Jain and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Anil D\u2019Silva)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/tech-stocks-drag-wall\/file-photo-raindrops-hang-on-a-sign-for-wall-street-6\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8L0UJ-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8L0UJ-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Devik Jain and Ankika Biswas (Reuters) \u2013 Technology and financial stocks pulled Wall Street\u2019s main indexes lower for a third straight session on Thursday, as investors worried that the<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1653394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1653394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1653394"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1653394\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1653394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1653394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1653394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}