RealTime IT News

Rising Rates Rock Stocks

Stocks tumbled Wednesday after rising interest rates renewed inflation fears.

Rates didn't rise all that much — the ten-year treasury yield ticked up just a third of a basis point — but with stocks stalled in a month-long trading range, that was all nervous investors needed to sell, although subprime mortgage fears may also have been a factor in the sell-off.

The major indexes all lost more than 1% on the day, with the S&P 500 falling 1.4% on weakness in oil shares.

Microsoft shed 1.5% on plans to modify Vista.

FSI fell 14% on a bigger than expected loss, and Littlefuse lost 9% on a warning.

CA gained 1.5% on a share buyback plan, while Alcatel Lucent rose 1% on hopes for business from Verizon .

Digital River climbed 4% on an upgrade.

IHS tacked on 3% on its results.

The Nasdaq fell 26 to 2599, the S&P 500 lost 20 to 1512, and the Dow tumbled 146 to 13,489. Volume rose to 3.29 billion shares on the NYSE, and 2.04 billion on the Nasdaq. Declining issues led by a 27-7 margin on the NYSE, and 21-8 on the Nasdaq. Downside volume was 76% on the NYSE, and 78% on the Nasdaq. New highs-new lows were 223-51 on the NYSE, and 149-73 on the Nasdaq.