With rising concerns about a possible spike in borrowing rates in the US, the markets took the biggest hit on Monday with Wall Street getting pushed back. 

Tech-based Nasdaq took the most substantial hit and dropped 2.5% while closing at 31,521.69 along with S&P 500 which dipped by 0.8% and closed at 3,876.5 points. 

On the contrary, the Dow Jones Industrial Average managed to pull back from initial dips and closed at with small gain of less than 0.1% with 31,521.69 points. 

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While the US Congress continues to lobby the $1.9 trillion bill for additional support from lawmakers of the country, investors in the US seem to push yields on 10-year Treasury notes higher, which normally an indication of inflation and increased rate of interest in an economy like the US. 

Peter Cardillo of Spartan Capital noted that rising lending rates hit tech companies more since they rely more heavily on financing.

“Generally, when yields go up, interest rates go up,” Cardillo told AFP.

“But this time around, it may not be the case because the Fed keeps saying they’re not going to change their rate policy for some time to come.”

Jerome Powell, the chairperson of the Federal Reserve of the US, on multiple occasions, stressed that US authorities will not increase the borrowing rates in acknowledgment of the financial instability people are experiencing due to the pandemic. He is expected to provide further clarity on the pressing concerns in a session with Congress on Tuesday and Wednesday. 

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After the life-threatening incident on the Boeing 777 aircraft, where an engine failed and broke up, the company ended with a 2% loss after an unpredictable day. 

The engine maker’s parent company Raytheon Technology lost 1.7%.