The Dow Jones Industrial Average fell over 300 points on Wednesday as tech names like Intel, Microsoft and Netflix were in the red, helping to also bring the Nasdaq Composite down over 100 points. The S&P 500 was also down just over 30 points as of 11:00 a.m. ET.
After the major indexes were in the midst of a historic bull run, a market correction was waiting in the wings, which has investors wondering how much of a pullback in U.S. equities will occur.
“Portfolio managers tend to move to the sidelines in a skittish tape out of fear of suffering from a quick and sharp pullback,” said Jeremy Klein, chief market strategist at FBN Securities.
“The fundamental environment, though, remains supportive of share appreciation. I contend that the concerns of rising interest rates are largely overblown. Specifically, I do not anticipate much more of an increase in longer dated Treasury yields,” said Klein..
Other tech giants like Apple and Cisco systems pulled back, 1.4% and 1.1%, respectively.
Yields Resume Upward Trajectory
In the U.S. government debt space, the benchmark 10-year Treasury note and 30-year note continued their upward trajectory. The 10-year yield ticked higher to 3.227, while the 30-year rose to 3.392.