Nasdaq snaps winning streak as techs sell off

A tech stock sell-off sent Wall Street’s major indexes lower Thursday, snapping the Nasdaq’s three-day winning streak. Investors took profits on big cap growth stocks like Microsoft and Apple even though benchmark Treasury yields fell.

National Securities Chief Market Strategist Art Hogan says investors are more concerned with where yields are headed than where they trade now.

“The new part of the narrative or conversation around rates is that while we seem to have settled into the sort of one-and-three quarter level, we also assume that this year we may well see four interest rate hikes, so that one and three quarters you know likely pushes north of 2%, and I think people are still trying to get their arms around it.”

Also hurting sentiment: Word from Lael Brainard … who became the latest central banker to signal the Federal Reserve is ready to begin raising interest rates in March.

Even data showing a slowing of inflation at the wholesale level could not attract buyers.

The Dow fell 176 points, down a half percent. The S&P 500 declined nearly one-and-a-half percent, and the Nasdaq dropped two-and-a-half percent.

Shares of Delta Air Lines rose 2%. The carrier managed to boost quarterly earnings despite having had to cancel thousands of flights during the busy holiday season.

KB Home shares sizzled, jumping over 16%. The home builder’s quarterly revenue shot up 40%, and its profits breezed past analysts’ estimates.

Banks kick off earnings season Friday, with JPMorgan Chase, Citigroup and Wells Fargo up at bat.

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