By Felicity Duncan
The S&P 500 had a bad day on Wednesday. The index ended the day down 3.3% and tech stocks – the star performers of the nine-year rally – were down nearly 5%. The tech-heavy NASDAQ was down 4%. Some market observers are reading this as a rotation out of the tech stocks that have driven the market for so long. Others point to rapidly rising US bond yields as the culprit behind the slump.
Whatever the reason, the S&P ended Wednesday with its fifth consecutive negative session, marking its longest losing streak in nearly two years. There are other signs of market weakness too – for example, less new money is flowing into popular ETFs and funds.
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It’s far too early to tell if this is a mild correction or perhaps something worse. But it certainly is worth keeping an eye on.
In Premium today, you can read about Pravin Gordhan’s warning to Bain, which has been potentially implicated in the state capture scandal. You can also learn why Tencent’s slumping share price may be behind Naspers’ recent weakness.
