Twitter Stock Dives 11.4%

Tech stocks were among the weakest on a bad day for Wall St.
By Newser Editors and Wire Services
Posted Jul 11, 2022 3:47 PM CDT
Twitter Stock Dives 11.4%
Traders work on the floor at the New York Stock Exchange in New York, July 1, 2022.   (AP Photo/Seth Wenig)

Wall Street indexes resumed falling on Monday, ahead of a busy week with updates scheduled for how bad inflation is and how corporate profits are being affected. The S&P 500 fell 44.95 points, or 1.2%, to 3,854.43. The Dow Jones Industrial Average fell 164.31 points, or 0.5%, to 31,173.84. The Nasdaq rose 262.71 points, or 2.3%, to 11,372.60. The Russell 2000 index of smaller companies fell 37.36 points, or 2.1%, to 1,732.01. Wynn Resorts and Las Vegas Sands slumped more than 6% after COVID infections forced the shutdown of casinos in Macau. Twitter dived 11.4% in the first full day of trading since billionaire Elon Musk said he wants out of his deal to buy the social media platform, the AP reports.

Other big technology companies were also particularly weak. It’s a continuation of this year’s trend, where rising rates most hurt the investments that soared highest earlier in the pandemic. he highest inflation in four decades is pushing central banks around the world to hike interest rates, which puts the clamps on the economy and pushes downward on all kinds of investments. Parts of the economy are slowing already, from manufacturing to housing, though the still-hot jobs market remains a notable exception. Utilities and other companies that don't need a strong economy to thrive were among the minority to rise Monday.

In the bond market, a warning signal is continuing to flash about a possible recession. The yield on the 10-year Treasury slid to 2.99% from 3.09% late Friday as investors moved dollars into investments seen as holding up better in a downturn. It remains below the two-year Treasury yield, which fell to 3.06%. Such a thing doesn’t occur often, and some investors see it as a sign that a recession may hit in the next year or two. The 10-year yield has been below the two-year yield since last week.

(More stock market stories.)

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