Sunday, 28 May 2023 06:40 GMT

US Stocks Close Lower as Technology Companies Suffer Losses

(MENAFN) US stocks closed lower on Tuesday, with the Dow falling into negative territory despite starting the day in the green. The Dow dropped 37 points, or 0.12 percent, to finish at 32,394, while the S&P 500 shed six points, or 0.16 percent, to 3,971. The Nasdaq lost 52 points, or 0.45 percent, to close the session at 11,716 after the tech-heavy index suffered losses for a second consecutive day.

The VIX volatility index, also known as the fear index, decreased by 3.1 percent to 19.96, while the 10-year US Treasury yield increased by 0.6 percent to 3.549 percent. The dollar index lost 0.5 percent to 102.36, while the euro gained 0.5 percent to USD1.0850 against the greenback.

Gold prices rose by 0.9 percent to USD1,974 per ounce, while silver increased by 1.1 percent to USD23.33. Meanwhile, crude oil prices rose by around 0.8 percent, with global benchmark Brent crude at USD78.36 per barrel and US benchmark West Texas Intermediate crude at USD73.46.

The drop in US stocks is due to technology companies continuing to suffer losses for the second consecutive day. The Nasdaq index has been hit particularly hard, as investors have been selling off tech stocks amidst concerns over rising inflation and higher interest rates. The Federal Reserve has indicated that it will keep interest rates near zero until at least 2023, but investors remain wary.

Meanwhile, precious metals have been on the rise, with gold and silver seeing gains as investors turn to safe-haven assets amid market volatility. Crude oil prices have also increased, with Brent crude and West Texas Intermediate crude seeing gains due to concerns over supply disruptions in the Middle East.

Overall, market volatility remains high as investors navigate a range of economic and political uncertainties, including the ongoing COVID-19 pandemic and the potential for higher inflation and interest rates.


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