finance
Wall Street Indexes Fall as Technology Stocks Decline
Major U.S. stock indexes declined Tuesday as technology shares fell amid concerns over possible interest rate increases later this year. The S&P 500 dropped 1.2 percent while the Nasdaq composite fell 1.8 percent.
The Sydney Morning HeraldAudio version
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U.S. stock indexes declined Tuesday as technology shares fell on concerns that the Federal Reserve may raise interest rates before the end of the year. The S&P 500 fell 1.2 percent after posting gains in 11 of the previous 12 weeks. The Nasdaq composite dropped 1.8 percent while the Dow Jones industrial average rose 48 points, or 0.1 percent.
Technology shares fell 12.7 percent and Nvidia shares declined 3.4 percent. Samsung Electronics shares dropped 12.3 percent in South Korea. The technology sector within the S&P 500 has risen 26 percent over the past three months and 17 percent for the year.
Australian sharemarket futures pointed to a gain of 37 points, or 0.4 percent, at the open. The ASX lost 0.3 percent on Tuesday. The Australian dollar traded at US69.21 cents.
Street now assigns an 85 percent probability that the Federal Reserve will raise its benchmark interest rate this year, up from 60 percent a week earlier. The yield on the 10-year Treasury note fell to 4.49 percent from 4.51 percent. The yield on the 2-year Treasury note fell to 4.19 percent from 4.24 percent.
A report due Thursday is expected to show that a preferred inflation measure rose to 4.1 percent in May.
