U.S. stocks end mixed as tech stocks overwhelmed by rising Treasury yields

New York (US), November 23: U.S. stocks ended mixed on Monday despite a high opening as rising Treasury bond yields led to material drop of tech stocks.
The yield of 10-year Treasury bonds shot up 8.08 basis points on Monday and closed at 1.630 percent, which is seen as a headwind for tech stocks.
Meanwhile, financial stocks firmed up thanks to expected revenue growth from higher interest rates.
U.S. President Joe Biden on Monday announced that he intends to nominate Jerome Powell for a second term as Federal Reserve chairman and to nominate Lael Brainard as vice chair.
Earlier, investors speculated that more dovish Brainard could be nominated as Fed chair.
The Dow Jones Industrial Average increased 17.27 points, or 0.05 percent, to 35,619.25. The S&P 500 decreased 15.02 points, or 0.32 percent, to 4,682.94. The Nasdaq Composite Index was down 202.68 points, or 1.26 percent, to 15,854.76.
The three indexes saw meaningful sell-on while approaching the closing of the market, indicating investors remain concerned about uncertainties.
A moderately more hawkish Fed tilt, which raises the real 10-year real Treasury yield, strengthens the dollar, lowers inflation, tightens financial conditions and reduces valuation for this over-extended market, would serve as a solution to defuse risks from market bubbles, said Barry Bannister, head of institutional equity strategy with U.S. brokerage and investment banking firm Stifel, on Monday.
"A bubble driven by current central bank real yield repression may take the S&P 500 to 5,500 (in) mid-2022 and 6,750 (in) mid-2023, creating a systemic risk when it bursts," said Bannister in a research note.
Source: Xinhua