Nasdaq falls below 50-day moving average for the first time since late October as yields rise


The Nasdaq Composite fell Tuesday morning, with the drop in the tech-laden index pushing it below its 50-day moving average for the first time in about four months. The Nasdaq COMP,
-1.43%
It was trading 2.2% lower, at the last check, after a 2.5% slip on Monday, which put the Heavy Tech Index at around 13,233, below its 50-day moving average, seen by technical analysts as an indicator of short-term momentum in an asset, at 13,240.68, according to FactSet data. The index hasn’t risen above that level since Oct. 28, according to Dow Jones Market Data. Market watchers tend to view moving averages as the demarcation line between bullish and bearish momentum in an asset. Meanwhile, the overall market leaned lower as government bond yields surged, forcing investors to evaluate their investments in tech stocks that are considered highly valued. The S&P 500 SPX Index,
-0.53%
was down 1% to 3837, while the Dow Jones Industrial Average DJIA,
-0.27%
Tuesday’s share fell 0.6% to 31.341.

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