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Investing.com – The S&P 500 fell to fresh lows for the year, as tech struggled to rebound from the April selloff amid an ongoing rise in Treasury yields that jumped ahead of a widely expected Federal Reserve interest rate hike later this week.
The S&P 500 fell 0.8%, the Dow Jones Industrial Average slipped 0.71%, or 233 points, the Nasdaq fell 0.5%.
Fresh from a brutal selloff in April, tech stocks struggled to hold onto intraday gains as growth sectors of the market remain in the crosshairs just as the 10-year Treasury yield breached 3% on bets of steeper Fed rate hikes ahead.
“We see the FOMC on course to deliver its second rate hike of the cycle – a 50bp hike – at its May meeting, while also announcing its plan to begin reducing the size of its balance sheet starting in June,” Morgan Stanley said in a note.
Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL)led the decline in the big tech, while Meta (NASDAQ:FB) was the relative outperformer, up more than 1%.
On the economic front, manufacturing activity in April slowed to its lowest reading since September 2020, pressured by further supply chain woes following recent lockdowns in China.
“Supplier delivery times are lengthening again, probably in response to China lockdowns,” Jefferies said in a note.
