FX.co ★ Tech stocks continue to fall

US indices closed near baseline on Tuesday even amid a rebound in tech stocks.

In particular, the Dow Jones Industrial Average increased by 0.1% and reached 31537.35 points, while the Nasdaq Composite decreased by 0.5% and closed at 13465.20 points.

In the meantime, there is no need to know about it.

One reason why this happened is that the Federal Reserve said interest rates will not increase yet, reassuring everyone who feared such a prospect.

Another reason is that US bond yields have increased, which accordingly led to a decrease in demand for risky assets, including shares. However, experts say that the stock market is still far from the level of bond yields, which could provoke serious trouble for securities.

To add to that, technology stocks have been declining for quite some time already, which is delivering a huge blow to indices, since the technology sector is the main force behind the global market for much of the past year. Their values are based on the flow of future profits, but with a higher discount rate.

Nevertheless, the leaders of the trading session on Tuesday were Wynn Resorts and MGM Resorts International, whose quotes increased by 7.7% and 5.5%, respectively. Walt Disney shares, on the other hand, gained 2.8%.

Meanwhile, stocks of Tesla sank by 2.2%. The day before, they fell by almost 9%. The main reason for these declines was the depreciation of Bitcoin.

Volatility in the crypto market has been fueled by statements of Tesla CEO Elon Musk. For example, last weekend, Musk said that Bitcoin and Ethereum could increase even more. Aside from that, Tesla has invested approximately $ 1.5 billion in BTC.

Palantir Technologies also continued a negative trend, declining by 4.5%. Stocks of Square also sank by 4.3%.

Home Depot also announced a possible slowdown this year, after which its shares fell by 3.1%.

Yield on 10-year US Treasuries also slipped to 1.363%, from 1.381% on Monday.

Stoxx Europe 600 was also down by 0.4%.

As for Asia-Pacific stock indices, the Hang Seng index increased by 1%, while the Shanghai Composite lost 0.2%.