Stocks Slump, With Tech Leading Decline; Oil Jumps: Markets Wrap
Traders sit below an electric stock board while working on the floor of the Colombo Stock Exchange in the central business district of Colombo, Sri Lanka. (Photographer: Kuni Takahashi/Bloomberg)

Stocks Slump, With Tech Leading Decline; Oil Jumps: Markets Wrap

Tech companies led declines in U.S. equities as investors rotated away from the stocks that thrived during the pandemic. Oil jumped after the Suez Canal was blocked by a giant container ship.

Zoom Video Communications Inc., Peloton Interactive Inc. and DocuSign Inc. were among the worst performers on the Nasdaq 100. Energy producers, banks and transportation companies fared better as traders bought up cyclical stocks. The dollar strengthened.

Demand increased at an auction of five-year Treasury notes, boosting the bid-to-cover ratio from the previous sale, a relief after last month’s disastrous seven-year auction sparked a global selloff in bonds. Investors are also wagering on which sectors of the stock market are poised to fare the best as growth picks up.

Stocks Slump, With Tech Leading Decline; Oil Jumps: Markets Wrap

“As long as we continue to exceed expectations on the economic front, which I think we will, the cyclical trade is still going to have legs,” Brian Nick, chief investment strategist at Nuveen, told Bloomberg Television.

European stocks eked out a gain. A gauge of Asia-Pacific shares fell the most in almost three weeks. Hong Kong equities dropped to a 10% correction amid the city’s decision to temporarily suspend BioNTech SE vaccines.

West Texas Intermediate crude added more than 5% after a container ship ran aground in the Suez Canal and blocked traffic in both directions on one of the world’s busiest maritime trade routes.

Stocks Slump, With Tech Leading Decline; Oil Jumps: Markets Wrap

These are some key events to watch this week:

  • The U.S. Treasury auctions seven-year debt.
  • U.S. personal income and spending data on Friday.

These are some of the main moves in financial markets:

Stocks

  • The S&P 500 Index fell 0.5% as of 4 p.m. New York time.
  • The Stoxx Europe 600 Index rose less than 0.1%.
  • The MSCI Asia Pacific Index dropped 2%.
  • The MSCI Emerging Market Index dipped 2%.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.3%.
  • The euro fell 0.3% to $1.1814.
  • The British pound sank 0.5% to $1.3688.
  • The Japanese yen weakened 0.1% to 108.68 per dollar.

Bonds

  • The yield on 10-year Treasuries fell two basis points to 1.6%.
  • Germany’s 10-year yield fell one basis point to -0.36%.
  • Britain’s 10-year yield was little changed at 0.76%.

Commodities

  • West Texas Intermediate crude gained 5.2% to $60.74 a barrel.
  • Gold strengthened 0.4% to $1,733.76 an ounce.

©2021 Bloomberg L.P.

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