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Nasdaq, Dow, S&P 500 fall; Super Micro, Apple, Microsoft, Meta, Trump Media, Uber, More Mover; PCE inflation nears Fed target

The sell-off on the stock markets intensified on Thursday.

The Dow Jones Industrial Average fell 0.7%, while the S&P 500 fell 1.3% and the tech-heavy Nasdaq Composite fell 2.1%. At the start of trading, the increases were milder.

Technology shows the way down. Investors had piled into these stocks, which opened Thursday with a year-to-date gain of more than 23% as software companies continue to monetize their artificial intelligence offerings and chipmakers see growing demand for their AI chips. Now some are taking their profits by selling.

Not helping is the fact that the 10-year Treasury yield has risen to 4.3%, almost a full percentage point from where it was about a month ago, as markets view the economy's recent strength as enough to contain some inflation and high interest rates maintain the picture.

The problem for tech companies is that higher yields on long-term bonds reduce the value of future earnings, and many tech companies are valued on the basis that much of their earnings will be many years in the future.

Even though Microsoft and Meta Platforms reported better-than-expected earnings, the picture wasn't enough to boost stocks, both of which were deep in the red on Thursday. The two companies have a combined market value of around $4.5 trillion and are therefore weighing heavily on the Nasdaq.

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