Tech stocks face another challenging day on Wall Street. Shares are lower on a broad front as a result of rising yields on US government bonds.
Technology funds and other growing companies are susceptible to this because investors look at their future earnings growth. It becomes proportionally lower when interest rates rise.
Investors are also looking again at the consequences of the scandal surrounding the Archegos hedge fund. Due to that fund’s problems, several large banks such as Goldman Sachs, Morgan Stanley and Citigroup (with pluses of up to 3 percent) have been selling large amounts of shares since Friday.
Cable and entertainment group ViacomCBS, among others, lost tens of percentages in a few days, but it rebounded somewhat on Tuesday with a plus of almost 3 percent.
Finally, there is also a look at politics in Washington. President Biden may want to announce Wednesday that the United States will invest between 3 trillion and 4 trillion dollars in infrastructure and the generation of green energy, among other things. This is partly offset by a tax increase that should yield 3 trillion dollars.
PayPal (minus 0.1 percent) is also in the spotlight. The payment processor announced that it would also accept bitcoins and a number of other cryptocurrencies in the United States. The price of bitcoin rose 1.7 percent on Tuesday, and one bitcoin is now worth more than $ 59,000.
After a few trading minutes, the Dow Jones index was 0.3 percent in the minus at 33,084 points. The broad-based S&P 500 lost 0.4 percent to 3955 points, and tech exchange Nasdaq lost 0.7 percent. That gauge stood at 12,976 points.