Stocks Ends Lower, Biotech Stocks Bounce Back
4:21 pm Monday, June 07th, 2021
Most U.S. equities fell slightly and Treasury yields jumped as investors are concerned about inflation risks and the potential impact of a minimum corporate tax that could enable foreign governments to impose levies on big American companies.
Besides technology, six other sectors trade-in negative territory at midday. The lightly-weighted materials sector (-1.4%) is the weakest performer while influential groups like financials (-0.5%), industrials (-0.8%), and consumer discretionary (-0.5%) hold slimmer losses.
The technology sector has been pressured by a mixed showing from its top components and a soft start to the week from chipmakers. The PHLX Semiconductor Index is down 0.8% after jumping 2.4% on Friday. All but three components of the high-beta group trade lower while the three advancers sit just above their flat lines with KLA Corp (KLAC) holding the lead. The Nasdaq has been able to overcome the weak showing from technology with help from biotech names.
The iShares Nasdaq Biotechnology ETF (IBB) has rallied past its April high to its best level since early March after the FDA approved Biogen’s (BIIB) Alzheimer’s treatment. Shares of Biogen remain halted at this time while the health care sector (+0.4%) trades only behind real estate (+1.1%) on today’s leaderboard.
Like stocks, Treasuries have spent the early portion of today’s session in a narrow range. The 10-yr note is currently down slightly with its yield up one basis point at 1.57%.
Lawmakers in Washington have yet to agree on the terms of an infrastructure spending proposal while G-7 finance ministers agreed to support a 15% global minimum tax, which was expected.
