Stock Market News: Dow Falls Amid Rising Treasury Yields and Notable Stock Movements
Stock Market Analysis Following Treasury Yields Surge
The Nasdaq Composite snapped its five-day winning streak as the broader market extended its slide in the face of rising bond yields. The tech-heavy index dropped 1.6%, while the Dow Jones Industrial Average fell 410 points, or 1%. The S&P 500 was down 0.9%.
Market Volatility and Defensive Stock Performance
- The market's fear gauge, the VIX, briefly spiked above 20, signaling heightened volatility.
- Real estate investment trusts and utilities stood out as Wall Street favored defensive stocks.
Impact of Rising Treasury Yields
The yield on the 2-year Treasury note was up to 4.085%, while the 10-year yield reached 4.24%. This represents the highest yield at 3 p.m. since July 25.
Next week’s October jobs report will be a major test as it could influence the Federal Reserve's interest-rate decision.
“Over the last couple weeks, stocks have largely ignored the bond market and the dollar,” states BTIG Chief Market Technician Jonathan Krinsky. He adds, “The bullish narrative was that bonds were re-pricing to where they should be based on the stronger-than-anticipated economy.” Krinsky expresses concern that the pullback could indicate an upcoming downside risk for stocks.
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