Tech Stocks Tumble Amid Robust Economic Growth and Rising Treasury Yields

U.S. stock indexes were set to open lower as strong economic data pushed Treasury yields higher, impacting major tech stocks. The economy's faster-than-expected growth last quarter and rising yields influenced investor sentiment, while hopes for a 'Santa Claus rally' keep market optimism alive.

The U.S. stock market was forecasted to open on a down note Tuesday as stronger-than-expected economic metrics drove Treasury yields up, putting pressure on key technology stocks. The latest data revealed that the economy expanded at an unexpected 4.3% annualized rate last quarter, surpassing economists' 3.3% forecast, as reported by Reuters.

The dollar saw pared losses and the 10-year Treasury yield neared a one-week high at 4.18%. This led to minor declines in shares of tech giants such as Nvidia, Alphabet, and Micron Technology. 'It's important to note that this is Q3...though it looks pretty good altogether,' commented Mark Malek of Siebert Financial, adding context to the economic outlook.

Despite recent market volatility, fueled by strong tech stock performances and a cooler November inflation report, hopes for a 'Santa Claus rally' remain. The S&P 500, poised for a year-end rise, mirrors Wall Street's seasonal optimism. Meanwhile, communication services and information technology sectors are anticipated to lead S&P 500 performance this year.

(With inputs from agencies.)