Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Wall Street Opens Lower on Inflation Fears; Nasdaq Down 1.4%

Stock MarketsSep 28, 2021 10:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Geoffrey Smith -- U.S. stock markets fell at the opening on Tuesday as fears of inflation continued to push up bond yields, pressuring valuations that have been supported since the start of the pandemic by extraordinary stimulus measures.

By 9:45 AM ET (1345 GMT), the Nasdaq Composite was down 1.4%, near its lowest level in a month, while the S&P 500 was down 0.8% and the Dow Jones Industrial Average was down 100 points, a relatively modest 0.3%. 

As on Monday, the Dow's outperformance was due largely to strength in banking, energy and other 'value' stocks, whose stronger near-term cash flow leaves them better able to cope with rising interest rates.  The 10-Year Treasury yield rose to a new three-month high of 1.56% before retreating a little to 1.54%.

The market was unsettled by the pre-release of Federal Reserve Chairman Jerome Powell's testimony to Congress, due at 10:00 AM ET, which acknowledged that inflation inflation had been stronger than expected and is likely to remain "elevated" for at least some months.

While inflation during the economic rebound this year has been tied to certain sectors, rather than a broadly based rise in prices, it has grown increasingly acute in the last few months, with further evidence of the phenomenon Tuesday in national house prices, which rose 19.2% on the year through August. 

There were conspicuous drops in some of the heavyweight tech names that have been responsible for much of the broader market gains this year. Microsoft (NASDAQ:MSFT)t stock and Amazon (NASDAQ:AMZN) stock both fell 2.0%, while  Alphabet (NASDAQ:GOOGL) stock fell 2.6% and Facebook (NASDAQ:FB) stock fell 2.7%, as investors booked profits to focus on stocks with less challenging valuations. 

Vaccine makers were among the biggest fallers in early trading, amid optimism that the worst of the pandemic is now at least behind the U.S., if not the rest of the world. New infections have fallen by over half since their peak earlier this month, with deaths also seemingly past their peak. Moderna (NASDAQ:MRNA) stock fell 5.8% while Novavax (NASDAQ:NVAX) stock fell 7.1%, Studies showing that Moderna's vaccine may protect people against Covid-19 for longer than rival Pfizer (NYSE:PFE)'s have worked against the stock in the last couple of days, suggesting that there may be less need for health authorities to buy booster shots from the company.

Energy stocks were broadly supported by the continued rise in natural gas prices, even though crude oil prices fell back after the global benchmark Brent touched a three-year high of over $80 a barrel overnight. Exxon Mobil (NYSE:XOM) stock rose 0.8% while Chevron (NYSE:CVX) stock rose 0.5%. Amid smaller names, Camber Energy (NYSE:CEI) stood out with a 15% rise, as retail traders piled in on a characteristic squeeze of a stock thought to be heavily shorted.

Wall Street Opens Lower on Inflation Fears; Nasdaq Down 1.4%

Related Articles

Bakkt Jumps On Crypto Custody Deal With Nexo
Bakkt Jumps On Crypto Custody Deal With Nexo By - Jan 19, 2022

By Sam Boughedda — Digital asset platform Bakkt Holdings Inc (NYSE:BKKT) saw its shares jump 2.2% Wednesday after it announced a partnership with Nexo, a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email