By Yasin Ebrahim

Investing.com – The S&P 500 fell to fresh lows for the year, as tech struggled to rebound from the April selloff amid an ongoing rise in Treasury yields that jumped ahead of a widely expected Federal Reserve interest rate hike later this week.

It fell 0.8%.

Tech stocks suffered a severe selloff in April and struggled to retain intraday gains. Growth sectors remain under pressure just as the 3% breached on fears of sharper Fed rate rises.

“We see the FOMC on course to deliver its second rate hike of the cycle – a 50bp hike – at its May meeting, while also announcing its plan to begin reducing the size of its balance sheet starting in June,” Morgan Stanley said in a note.

Amazon.com  (NASDAQ:) and Apple (NASDAQ:)led the decline in the big tech, while Meta (NASDAQ:) was the relative outperformer, up more than 1%.

In April, the economy saw manufacturing activity fall to its lowest point since September 2020. The reason was further supply chain issues following recent China lockdowns.

“Supplier delivery times are lengthening again, probably in response to China lockdowns,” Jefferies said in a note.