Higher Interest Rates send Tech Stocks Down

Tech index fell 0.5% to 15,775.14, and after struggling all day the S&P 500 was up 0.17%. The Dow Jones Industrial Average rose 194.55 points to 35,813.80 boosted by bank and energy stocks.

Increased Treasury yields and run away inflation have jumped following President Biden’s decision to renominate Fed Chair Jerome Powell. Higher rates are a negative indicator for high-growth companies because cash for growth is more expensive.

“We have seen a little pressure on tech stocks as long-term government bond yields have rallied for the second day now.” said Angelo Kourkafas, of at Edward Jones.

Social media giant Meta, the parent company of Facebook, fell more than 1%, while Roku and biotech stock Moderna dropped more than 2%. Shares of Zoom tumbled 14% after warning of a slowdown ahead as the Covid pandemic winds down and the demand for remote contact decreases.

Optik Options alert on MSFT today gain 30%.

The U.S. and five other countries including China will tap strategic petroleum reserves hoping to bring down gas prices. The White House grappled with how to address rising prices for gasoline, groceries and other consumer products that have clouded prospects for President Biden’s agenda. “This a problem—not just in the United States but around the world,” Mr. Biden said of the high gas prices Tuesday afternoon. “We’re taking action.” Even if crude prices do fall, consumers may be short-lived as demand is expected to keep rising into next year as the global economy continues its recovery from the Covid-19 pandemic.

Apple is suing the NSO Group, an Israeli maker of surveillance software, alleging the company misused its products and services, escalating battle over surveillance and user privacy. The lawsuit alleges that NSO Group engaged in “concerted efforts in 2021 to target and attack Apple customers, Apple products and servers and Apple through dangerous malware and spyware,” and seeks to bar NSO Group from using Apple’s products.

The Israeli company has developed hacking techniques to install its surveillance software, called Pegasus, on Apple’s mobile phones without a user’s knowledge or consent, according to security researchers. Pegasus, they say, turns the iPhone into a silent spying device by gaining access to the device’s files, messages, microphone and camera.