The three major US stock indexes plunged collectively as the 10-year Treasury yield increase triggered selling pressure in the stock market.

BlockBeats News, December 28th. Overnight, the three major U.S. stock indexes collectively plummeted, with the Nasdaq plummeting more than 2% at one point during the day, as of the close, the Dow Jones fell by 0.77%, ending the five-day winning streak; the Nasdaq fell by 1.49%, falling below 20,000 points; the S&P 500 index fell by 1.11%.

The U.S. "Big Seven Tech Giants" all fell, with Tesla plunging more than 6% at one point; U.S. chip stocks and AI concept stocks also fell across the board. It is worth noting that this wave of sharp decline in the U.S. stock market was not driven by important economic data or news, which has caught the market by surprise. Wall Street analysts believe that in the absence of major news, data, and with thin trading, the 10-year U.S. Treasury yield, as an anchor for asset pricing, will have an impact on the stock market, with the higher the yield, the greater the pressure on the stock market.

On Friday, the yield on the 10-year U.S. Treasury rose by nearly 1% to 4.629%, nearing a seven-month high. The U.S. stock market may also face the risk of frenzied fund selling. According to data from Bank of America, in the past week, the U.S. stock market saw about $35 billion in outflows, the highest weekly outflow since December 2022. In addition, the Goldman Sachs trading desk estimates that, given the trends in stocks and bonds, U.S. pensions will sell $21 billion worth of U.S. stocks and buy an equal amount of bonds by the end of December this year. (Jinshi)