U.S. stocks closed lower on the 10th, with the Nasdaq falling to its lowest level in two years, as interest rates soared and technology stocks continued to be battered in a bear market.
The Nasdaq Composite fell 110.3 points, or 1.04%, to 10,542.1, its lowest close since July 2020, hurt by a slump in semiconductor stocks such as huida and AMD. The S&P 500 also fell 27.27 points, or 0.75%, to 3,612.39, weighed down by losses in semiconductor stocks and major tech stocks such as Microsoft. The Dow Jones Industrial Average fell 93.91 points, or 0.32%, to 29,202.88.
JPMorgan Chase CEO Dimon has warned that the U.S. could slip into a recession in 2023, and possibly more than just a mild economic contraction as the average economist is predicting.
Semiconductor stocks were hit after the Biden administration announced new export controls restricting U.S. companies from selling advanced computer semiconductors and related manufacturing equipment to China. Tech stocks were also hit the hardest in this sell-off as rising interest rates exposed their relatively high valuations and raised the cost of capital.
Although the bond market was closed, 10-year U.S. Treasury futures traded lower on the 10th, indicating that yields will continue to rise on the 11th. Yields are inversely related to prices. 10-year Treasury futures fell about 0.6%. Trading on the 10th was also lower than usual due to the Columbus Day holiday.
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