Nasdaq skids below 50-day moving average for the first time since late October as yields jump
The Nasdaq Composite tumbled Tuesday morning, with the slump in the technology-laden index pushing it beneath its 50-day moving average for the first time in about four months. The Nasdaq was trading 2.2% lower, at last check, after a 2.5% skid on Monday, putting the tech-heavy index at around 13,233, below its 50-day moving average, viewed by technical analysts as a gauge of short-term momentum in an asset, at 13,240,68, according to FactSet data. The index hasn't breached that level since Oct. 28, according to Dow Jones Market Data. Market watchers tend to view moving averages as the demarcation line between bullish and bearish momentum in an asset. The broader market, meanwhile, was tilt lower as government bond yields rise, forcing investors to assess their investments in technology shares that are seeing as richly valued. The S&P 500 index was down 1% at 3,837, while the Dow Jones Industrial Average slipped 0.6% in Tuesday action at 31,341.
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 23, 2021 10:19 ET (15:19 GMT)
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