Tech stocks are getting hit for a 3rd straight day
- Stocks continued a three-day losing streak Monday.
- Government bond yields jumped sharply higher to levels not seen since 2011 last week.
- Meanwhile, the US is said to be monitoring China for currency manipulation.
Stocks continued a three-day losing streak Monday following a bond selloff last week and as escalating trade tensions between the US and China left Wall Street on edge.
The bond market was closed Monday for the holiday, but the 10-year Treasury yield jumped to multi-year highs at 3.23% last week after a string of robust economic data. The Federal Reserve is expected to continue tightening, adding to three rate increases this year and eight since the financial crisis.
Technology companies, which have led Wall Street's latest bull run, took the biggest hits. The Nasdaq Composite was down 92 points, or 1.2%, to 7,696.48. Among the losers were Microsoft (-1.34%), Apple (-0.7%), Alphabet (-1.5%) and Nvidia (-2.23%). Shedding more than 4%, Tesla shares neared the lowest level in a year and a half.
Meanwhile, the Dow Jones industrial average pared losses after falling more than 200 points and climbed back to 26,463.75. The S&P 500 was little changed.
Concerns about conflicts between Washington and Beijing pulled down large-cap industrial stocks, including Boeing (-0.86%) and Caterpillar (-0.5%), which are sensitive to trade tensions.
Bloomberg reports the Trump administration is weighing whether to name China a currency manipulator. A weaker yuan could be used to boost exports and mitigate effects of US tariffs.