US stock market: S&P 500, Nasdaq end sharply lower as Alphabet disappoints, Treasury yields bounce

economictimes.indiatimes.com:

Alphabet shares slid after the Google parent posted disappointing earnings and as U.S. Treasury yields rose, reviving fears that interest rates could stay higher for longer.

The benchmark S&P 500 index notched its fifth daily decline in six to close below the closely watched 4,200 level.

The Nasdaq Composite slumped to its biggest single-session percentage drop since Feb. 21, with interest rate sensitive megacaps weighing heavily the tech-laden index.

The Dow Jones Industrial Average finished modestly lower.

The Philadelphia SE Semiconductor index plummeted 4.1%, its biggest one-day plunge since Dec.

22, 2022.

The Communication Services sector posted its largest percentage decline since Feb. 3.

Shares of Alphabet Inc plunged after the company reported disappointing cloud services revenue, reviving fears of an economic slowdown.

Benchmark Treasury yields resumed their upward drift, edging closer to the 5% level, feeding fears high interest rates could linger.

«Earnings have been a mixed bag, and that's causing some headaches but the real issue remains (Treasury) yields, which are showing no signs of weakening,» said Ryan Detrick, chief market strategist at Carson Group in Omaha.

Yields on 10-year Treasury notes rose after robust new home sales data and mortgage rates reaching 23-year highs stoked fears of prolonged elevated rates.

«The economy in the U.S.

continues to show it's on strong footing,» Detrick added. «That is likely one of the main reasons yields have been as strong as they've been.

»The bond market is sniffing out a potentially better economy down the road," Detrick said.

The Dow fell 105.45 points, or 0.32%, to 33,035.93, the S&P 500 lost 60.91 points, or 1.43%, to 4,186.77 and the Nasdaq