US Stock Market: Lower on Rash of Late-Day Selling in High-Growth and Technology Shares

The major U.S. stock indexes closed lower across the board on Wednesday, following through to the downside after the prior session’s sell-off. Pressure on equities came even as bond yields continued to retreat from recent highs. Additionally, investors set aside optimism about the economic recovery by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen.

In the cash market on Wednesday, the benchmark S&P 500 Index settled at 3889.14, down 21.38 or -0.55%. The blue chip Dow Jones Industrial Average finished at 32420.06, down 3.09 or -0.01% and the technology driven NASDAQ Composite closed at 12961.89, down 265.81 or -2.01%.

Early in the session, the indexes were trading higher, but retreated late in the day as reopening trades like airlines and cruise operators reversed earlier strength. Norwegian Cruise Line dropped 4.9%, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also ended the day lower.

Helping to underpin prices early was a dip in U.S. Treasury yields. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday, falling for a third day after the rate hit a 14-month high last week.

Meanwhile, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell appeared for a second day of virtual testimony before federal lawmakers. Both reiterated their belief that, thanks in large part to fiscal and monetary stimulus, the U.S. economy will see marked growth in 2021.

Powell said on Wednesday the most likely case is 2021 will be “a very, very strong year.”

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According to Reuters, Apple Inc, Tesla Inc and Facebook Inc led decliners on the S&P 500.

Intel Corp retreated after earlier gains as the company, in its efforts to expand chipmaking capacity, announced plans to spend as much as $20 billion to build two factories in Arizona and open its factories to outside customers.

U.S.-listed shares of Taiwan Semiconductor dropped, while semiconductor equipment makers Lam Research Corp, Applied Materials Inc and ASML Holding rose. Applied Materials were the biggest boost on the S&P 500, Reuters reported.

GameStop Corp tumbled more than 30% after the videogame retailer said it might cash in on a meteoric rise in its share price to fund its e-commerce expansion.