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Nasdaq and S&P 500 drop sharply as yields weigh on equities

The Nasdaq is down 2.6% to 25,012, while the S&P 500 falls 1.5% to 7,388, amid higher Treasury yields and a weaker crude oil price move.

Reported · Written up by our desk · Major Pairs

U.S. stock indexes fell sharply on heavy selling pressure, with the Nasdaq leading the move lower as investors reduced exposure to technology shares, according to Forexlive. The Nasdaq was down 2.65% to 25,012, while the S&P 500 fell 1.5% to 7,388.

Technically, Forexlive said the S&P 500 is testing a key hourly trendline support near 7,380, after briefly trading below it to a session low of 7,376 before rebounding to around 7,392. If sellers push and hold below that level, the next downside target is in a swing area between 7,321 and 7,341.

Forexlive also noted the Nasdaq has declined into an important support zone between 24,913 and 25,109, with the session low at 24,954.77. A sustained move below that floor would increase the bearish bias, shifting focus toward the 38.2% retracement of the rally from the late-March low at 24,707, with the rising 100-day moving average at 24,686.40 also cited as nearby support.

Separately, the outlet linked the pressure on equities to rising yields, saying the two-year Treasury yield was up 5.56 basis points to 4.3576% and the 10-year was up 4.6 basis points to 4.701%. Forexlive added that crude oil was up $5.06, or 5.8%, to $91.89.

Latest closeWTI crude $87.52 ▲3.1%|S&P 500 7,509.20 ▲0.9%|Nasdaq Comp. 25,837.21 ▲1.3%

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