BlockBeats news, December 28, the three major U.S. stock indexes collectively plunged overnight, with the Nasdaq at one point dropping over 2% during the session. By the close, the Dow Jones fell 0.77%, ending a five-day winning streak; the Nasdaq dropped 1.49%, falling below 20,000 points; the S&P 500 index fell 1.11%.
All seven 'tech giants' in U.S. stocks fell sharply, with Tesla experiencing a drop of over 6% at one point; U.S. chip stocks and AI concept stocks also all closed lower. It is noteworthy that this wave of significant decline in the U.S. stock market was not driven by important economic data or news, which surprised the market. Wall Street analysts believe that in the absence of major news, data, and with light trading, the 10-year Treasury yield, which serves as an anchor for asset pricing, will have an impact on the stock market. The higher the yield, the greater the pressure on the stock market.
On Friday, the yield on the 10-year U.S. Treasury bond rose nearly 1%, reaching 4.629%, close to a seven-month high. The U.S. stock market may still face the risk of a frantic sell-off. According to Bank of America data, the U.S. stock market experienced an outflow of about $35 billion in the past week, the highest single-week outflow since December 2022. Additionally, Goldman Sachs' trading division estimates that, given the trends in stocks and bonds, U.S. pensions will sell $21 billion worth of U.S. stocks and buy an equivalent amount of bonds before the end of December this year. (Jin Shi)