U.S. stocks tumble as rising bond yields hit tech shares

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NEW YORK, Sept. 28 (Xinhua) -- U.S. stocks closed sharply lower on Tuesday as a spike in bond yields accelerated a rotation out of high-flying tech shares.

The Dow Jones Industrial Average fell 569.38 points, or 1.63 percent, to 34,299.99. The S&P 500 decreased 90.48 points, or 2.04 percent, to 4,352.63. The Nasdaq Composite Index shed 423.29 points, or 2.83 percent, to 14,546.68.

Ten of the 11 primary S&P 500 sectors ended in red, with technology and communication services down 2.98 percent and 2.79 percent, respectively, leading the laggards. Energy rose 0.46 percent, the lone gaining group.

The massive losses in tech names came as U.S. bond yields continued to surge.

The yield on the benchmark U.S. 10-year Treasury climbed to 1.548 percent in late trading on Tuesday, while the yield on the 30-year Treasury bond hovered above 2 percent.

High-growth tech shares are rate-sensitive as higher interest rates could erode their future profits, compressing their stock valuations, experts noted.

Wall Street also looked to Federal Reserve Chair Jerome Powell's testimony to the Senate Banking Committee on Tuesday.

In prepared remarks, the Fed chief said that "inflation is elevated and will likely remain so in coming months before moderating," adding the related effects have been "larger and longer lasting than anticipated."

U.S.-listed Chinese companies traded mostly lower with seven of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note. Enditem

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