Tech companies are in a tough spot, and they're bringing the NASDAQ down in a big way. After the recent drop, many consumers and investors are pulling out of the market. What should you do if you're invested?
The NASDAQ is Getting Crushed (AND HERE'S WHY)- Video Transcription
Patrick Brunson: 00:00
During trading hours yesterday, the tech heavy Nasdaq index fell by as much as 1.8%. Each of the Fang stocks, Facebook, Amazon, Apple, Netflix, and Google all declined. And now, rising bond yields and interest rates are prompting investors to back away from tech and move towards safe haven assets like precious metals. Whenever you see rates rise in a rapid fashion, you typically see tech take a big hit as people start to get more concerned about the stock market in general, and that leads consumers and investors to pull back from risky areas of the stock market itself. Bond yields spiked following the jobs report on Friday and the benchmark 10 year treasury hit 3.24%, its highest level in more than seven years. The 10 year yield influences borrowing costs, including mortgages, car loans, and credit card rates. The Federal Reserve is gradually raising its target interest rate with the intent on keeping inflation in check, but it's making borrowing much more expensive.
Patrick Brunson: 01:04
That also increases the cost of paying back existing debt, which could slow spending and eventually slow the economy along with it. So if you're currently exposed in these areas with your retirement money itself, you need to pick up your copy of u.s. Money Reserve's quarterly report, ‘the crisis ahead, the three mistakes that could trigger the next financial crisis'. This report lists three main issues that we are currently dealing with as a country that could lead us into the next major recession. So to get your copy, click the link in the description below, or you can call the number on your screen to speak to a US money reserve representative that can get that sent to either your physical address or a digital copy to your email. If you have any questions regarding this video, you can also post your question in the comments sections below and we will address those as well. That's all for today and as always, thank you for watching u.s. Money Reserve's market insights.