The selloff came as investors repriced risk across equities amid fears of persistently higher rates, sparked by soft demand at the 20-year Treasury auction.
Notable losers among the 20 movers with at least $10 billion market cap also included Palantir Technologies Inc. PLTR, Coinbase Global Inc.
Other high-beta tech stocks such as Credo Technology Group Holding Ltd. CRDO and Mobileye Global Inc. MBLY each dropped over 3%, reflecting broad-based risk aversion triggered by the Treasury market spike.
Wall Street Extend Lows The S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust SPY, deepened losses, falling 1.3% by 2:17 p.m.
All S&P 500 sectors traded in negative territory, led by real estate, which dropped 2.7% under pressure from rising yields.
Following Wednesday’s poor 20-year bond auction, Treasury yields spiked sharply, causing a quick market reaction that saw a number of tech and high-growth companies plummet between 1:05 p.m. M. and 2:05 p.m. M. ET—the precise time frame during which 30-year yields rose above 5.08 percent.
Tempus AI Co. With a 6 percent drop, TEM was the most affected, followed by Hims and Hers Health Inc. HIMS, which fell 5%, according to data from the Benzinga Pro platform.
CoreWeave Inc. is an AI infrastructure company. CRWV fell 4 points 4 percent, while Strategy Inc., which is associated with Bitcoin. MSTR fell 4.3 percent.
The trading site is called Robinhood Markets Inc. The HOOD dropped 3 points to 7%.
Soft demand at the 20-year Treasury auction caused investors to reprice risk across equities in anticipation of consistently higher rates, which led to the selloff.
The bid-to-cover ratio of 2.46 dropped to a 19-month low, placing it close to the bottom quartile of the previous 50 auctions for the iShares 20+ Year Treasury Bond ETF TLT.
Palantir Technologies Inc. was one of the notable losers among the 20 movers with a market capitalization of at least $10 billion. PLTR, Global Coinbase Inc. COIN and Nvidia Corporation. NVDA, showing decreases of 32.1 percent, 20.9 percent, and 20.7 percent, in that order.
Pressure was also placed on semiconductor names, such as ON Semiconductor Corp. The stock of ON dropped 2 points, while Super Micro Computer Inc. For the duration of the hour-long selloff, SMCI dropped 3%. Additional high-risk tech stocks, like Credo Technology Group Holding Ltd. Together, CRDO and Mobileye Global Inc. Each of MBLY fell more than 3%, indicating widespread risk aversion brought on by the surge in the Treasury market.
The aerospace and biotech industries were also affected, as evidenced by Summit Therapeutics Inc. SMMT and USA’s Rocket Lab Inc. RKLB is down 3 points 5.5% and 2 points 7.7%, respectively.
Wall Street Continues to Fall.
Losses grew as the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500 Index, dropped 1 point3 percent by 2:17 p.m. m. ET, while small-cap stocks took a more severe beating, with the Russell 2000 falling 2 to 4 percent.
Every S&P 500 sector saw negative trading, with real estate leading the way with a 2 point 7 percent decline due to pressure from rising yields.
A surge in bullion prices as investors sought refuge amid Treasury volatility helped gold miners, as measured by the VanEck Gold Miners ETF GDX, to be the only industry group with gains.
The Invesco WilderHill Clean Energy ETF PBW fell 3 to 4 percent, making the clean energy sector the worst-performing sector of the day.
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This seasonal trade produced an average gain of 24% over a ten-year period, marking the beginning of Tesla’s most bullish period.
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