Stocks traded mixed on Wednesday, with the Nasdaq giving up earlier gains as jitters over inflation and rising rates weighed further on technology stocks.
The Nasdaq turned negative during afternoon trading, erasing earlier advances after opening in positive territory. The index had closed out Tuesday’s regular session lower by 2.8%, posting its biggest drop since March, while both the S&P 500 and Dow also fell.
The decline in technology stocks came as Treasury yields rapidly rose, with the swift move higher in borrowing costs pressuring valuations for growth and technology stocks.
“A lot of Big Tech is overpriced,” Teddy Parrish, CEO and chief investment officer of Parrish Capital, told Yahoo Finance on Tuesday. “Those valuations are going to have to go a little lower in one or two ways: They either sell off, or earnings continue to go up and the stocks trade sideways. You can have a little of both, but to look at some of these larger tech…