EDITOR'S NOTE
Stocks started the week on a sour note as investors sold shares of large tech companies. The major averages fell sharply, with the tech-focused Nasdaq Composite losing 2.1%.
A slight rise in interest rates spurred major selling in the growth sector. After hitting its highest level since June last week, the U.S. 10-year Treasury traded around 1.48% on Monday.
“U.S. stocks are trading decidedly lower to kickstart the week, driven by a further rotation out of the things that worked during the pandemic (tech and health care) and into (or at least less away from) the reopening beneficiaries and stocks that can manage the persistent supply chain bottlenecks that are beginning to dominate the post-pandemic landscape,” Goldman Sachs analyst Chris Hussey told clients. 
The so-called FAANG stocks all closed in the red. Social media giant Facebook lost 4.8% after being accused of a "betrayal of democracy" by a whistleblower who revealed her identity on Sunday.
Meanwhile, shares of energy stocks rose as U.S. oil prices topped $78 per barrel. West Texas intermediate crude settled at $77.62 per barrel.
"At these extremely lofty valuations, stock prices are very sensitive to modest changes in incremental capital flows, and it appears that there is some 'performance chasing' going on as the energy space is attracting capital which is trying to make it look like they had exposure to oil & gas (window dressing) and that means less money flowing into tech," said Mark Yusko, CEO and chief investment officer of Morgan Creek Capital Management.
TOP NEWS
TOP VIDEO
CNBC PRO
SPECIAL REPORTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
