On Thursday, May 5, 2022, the US stock market ended the day sharply lower, erasing more than the previous day’s surge on Wall Street, as profit booking triggered across the board over fears about increased rates, inflation, and the economic outlook. Markets were rattled by doubts that policymakers could stop spiraling prices, and investors were worried about stagflation.
The 10-year Treasury yield, which swings in the opposite direction of price, climbed above 3% for the first time since 2018. Rising interest rates can put downward pressure on growth-oriented tech firms by making future earnings less appealing to investors.
The Dow Jones Industrial Average index fell 1063.09 points, or 3.12 percent, to 32,997.97 at the close of trading. The S&P500 index fell 153.30 points to 4,146.87, or 3.56 percent. The Nasdaq Composite Index, which is heavily weighted in technology, fell 647.16 points, or 5%, to 12,317.69, its lowest closing level since November 2020.