The tech sector’s rout is catching up with the Dow
The Dow Jones Industrial Average (DJI) looks ready to snap its four-day win streak, as the tech sector’s recent rout catches up with the index, which was last seen down 419 points. A dramatic spike in the 10-year Treasury yield — which surged as high as 1.558% earlier — is casting a shadow on both the S&P 500 Index (SPX) and tech-heavy Nasdaq Composite (IXIC) as well, with both trading deep in the red at midday. Stocks’ apparent freefall has boosted the Cboe Volatility Index (VIX), which is eyeing its best day since mid-May.
Investors are also eyeing a budget stalemate in Congress, after Republicans blocked a bill on Monday which would have injected funding into the government until December, and suspended the debt ceiling until the end of 2022. A government shutdown looms if lawmakers cannot reach an agreement by Friday. Plus, Federal Reserve Chair Jerome Powell is set to warn the Senate Banking Committee that inflation pressures may last longer than initially expected.
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One of the best performing stocks on the Nasdaq today is Digital Brands Group Inc (NASDAQ:DBGI). The equity was last seen up 48.9% at $4.39, after the apparel name issued a 2022 financial revenue guidance of $37.50 million to $42.5 million, which marks a 350% rise from its 2021 revenue expectations. DBGI is trading at its highest level since early August, and has toppled pressure at its 40-day moving average for the first time in nearly two months.
Altimmune Inc (NASDAQ:ALT) is one of the worst performing stocks on the Nasdaq today, down 14% at $13.07 at last check, even after the biopharmaceutical name posted positive data for its 12-week phase 1 clinical trial of its pemvidutide treatment in obese and overweight volunteers. The stock still carries an 11.9% year-to-date lead, but has breached recent support at the 30-day moving average for the first time since August.
E-tail giant eBay Inc (NASDAQ:EBAY) is seeing an uptick in bearish options activity today, with 12,000 puts across the tape so far, which is double the intraday average and nearly triple the amount of calls exchanged. Most popular position is the November 75 put. EBAY is down 3.3% at $71.21 this afternoon, and while a reason for the negative price action is not immediately apparent, the equity has been cooling since hitting an Aug. 30 record high of $77.83. Shares seem to have found a footing at the 60-day moving average, however.