Indexes opened lower Monday as technology shares led the selling, and Twitter (TWTR) climbed after Elon Musk went back on plans to join the company’s board.
The Nasdaq composite, which is more than 50% weighted in techs, slid 1%. Technology Select Sector SPDR (XLK) fell nearly 2%.
The S&P 500 dropped 0.7%. The Dow Jones Industrial Average eased 0.2% as tech components Apple (AAPL), Microsoft (MSFT), Cisco Systems (CSCO) and Salesforce (CRM) fell more than 1.5%.
But small caps fared better, as the Russell 2000 climbed 0.1%.
Volume rose on the NYSE and Nasdaq compared with the same time on Friday.
The yield on the 10-year Treasury note rose nearly 4 basis points to 2.75%, as a sell-off in bonds continued. Last week, the benchmark yield jumped more than 30 basis points.
Energy Sector Leads Stock Market Losses
U.S. Stock Market Today Overview
|Last Update: 10:50 AM ET 4/11/2022|
While the technology sector struggled, energy stocks were the morning’s worst-performing sector. Energy Select Sector SDPR (XLE) tumbled 2.5%, practically erasing all of Friday’s gains. The sector ETF remains near record highs.
The price of U.S. benchmark crude oil fell nearly 4% to $94.44 a barrel. Covid-related lockdowns in China and the release of reserve oil stockpiles have put pressure on oil prices.
Twitter reversed higher after opening lower after Tesla CEO Elon Musk decided not to join Twitter’s board of directors. Twitter CEO Parag Agrawal announced Musk’s decision, though no specific reason was given. The stock met resistance at the 200-day moving average after last week’s surge.
Shares of Twitter rallied last week after Musk disclosed a 9.2% stake in the company, and then was named Twitter’s board. Over the weekend, Musk sent a number of tweets about the social media company, some of them critical.
IBD 50 Underperforms Stock Market
Innovator IBD 50 ETF (FFTY) fell 1.6%. IBD 50 stock Costamare (CMRE) fell 3.6% and is now trading below its 50-day moving average. With shares 12% below the 16.75 buy point of a cup with handle, the shipping stock is in a sell situation.
Chinese stocks sold off as the country continues a lockdown aimed at slowing a surge of Covid-19 cases. The Shanghai composite slid 2.6% and the Hong Kong Hang Seng lost 3%. In Japan, the Nikkei 225 fell 0.6%.
The iShares China Large-Cap ETF (FXI) lost 1.3%. But KraneShares China Internet ETF (KWEB) rose 0.4%.
Wells Fargo (WFC) rose 2.3% as it continues to work on a cup base with a 60.40 buy point. Citigroup today upgraded the bank to buy from neutral ahead of the company’s earnings report on Thursday. Wells Fargo is one of several major banks kicking off earnings season this week.
Nvidia (NVDA) gapped down to a loss of nearly 5% and is on track for a fifth straight decline. An analyst at Robert W. Baird downgraded Nvidia to neutral from outperform and cut the price target to 225 from 360.
Analyst Tristan Gerra said he believes order cancellations have started in consumer graphics chips, due to a combination of excess supplies in Western Europe and Asia, and a slowdown in consumer demand, notably in China, Barron’s reported.
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