The three US benchmark indices retreated from a Fed-induced rally one day after the central bank decided to double the pace on tapering bond purchase and a three-rate hikes guidance in 2022.
The Dow Jones Industrial Average was down 0.09%, the S&P 500 slid 0.88%, while Nasdaq slumped 2.47%. The tech stocks returned to a selloff mode, wiped out most of the gains from the previous day, while the cyclical sectors gained and led Dow to outperform the other two indices. The divergent moves of the major indices indicate investment funds are rotating from the pandemic benefited tech stocks into cyclical stocks amid optimism of economic reopening and a rising interest rate environment.
The big tech companies all finished lower. Apple slid 3.9%, Alphabet was down 1.37%, Amazon fell 2.55%, Microsoft declined 2.8%, and Meta platform lost 1.95%. Tesla Motor fell 5.01%, Nvidia slumped 6.84%.
Meanwhile, the bank stocks were mostly up. JP Morgan Chase rose 1.8%, Citi Group gained 1.39% and Wells Fargo added 2.69%.
At the data front, the US jobless claims rose 18,000 to 206, 000 for the week ended the 12th Dec. And Housing starts figure is greater than the consensus.
In the currency markets, the Bank of England rose the interest rate to 0.25% and sparked a pound rally, the sterling was up 0.47% again the greenback. While risk-off sentiment pushed Euro, Swiss Franc,s and Japanese Yen higher. All of the three safe-haven currencies rose more than 0.3% again the US dollar. The Canadian dollar strengthened against the USD, supported by a rising price in the crude oil markets. The AUD and NZD also strengthened.
The 10-year US Treasury bond yield fell to 1.434%.
The Gold futures surged $34.2, to $1,798.7 per ounce.
The WTI futures price was up by 1.71%, to $72.09.