Bond yields hit their highest level in three years and technology stocks lost ground as investors digested more details about the Federal Reserve's plan to raise interest rates. The Dow fell about -0.30%, or -100 points, Nasdaq dropped -2.0% or 315 points to 13,888. While the S&P 500 lost 0.90% or -43 points to 4,481, with the more defensive sectors Utilities (up +2.0%), Real Estate (up +1.55%) and Health Care (up +1.55%) leading five of the eleven primary sectors. Technology shares were sold off, falling for a second day as investors rotated out of the sector in anticipation for higher rates. Apple (-1.85%), Microsoft (-3.66%), Amazon (-3.23%) and Tesla (-4.17%) contributed to the sectors decline. Chipmakers Nvidia and Marvell Technology also continued their decent, falling -6.0% and -2.60% respectively. Expectations of higher short-term rates have hit the mortgage market, sending the average 30-year fixed-rate mortgage to 4.9% last week, the highest rate since 2018, according to the Mortgage Bankers Association. Shares of home builders, fell across the board. PulteGroup fell -US$1.15, or -2.70%, Lennar was down -US$3.42, or -4.30%, and D.R. Horton slid -US$2.92, or -3.90%.
