US stocks down as traders eye high Treasury yields
Sign up now: Get ST's newsletters delivered to your inbox
A trader works on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
DeeperDive is a beta AI feature. Refer to full articles for the facts.
NEW YORK - Wall Street stocks fell on Thursday as investors monitored rising bond yields and assessed the latest comments by the Federal Reserve chief.
The yield on the 10-year US Treasury note, seen as a proxy for US interest rates, hovered just below 5 per cent – a level it last breached in 2007.
A reason for the climb, said Mr Peter Cardillo, of Spartan Capital, is that the market feels “Fed rates will stay high for an extended period of time.”
The Dow Jones Industrial Average lost 0.8 per cent to end at 33,414.04.
The S&P 500 Index slipped 0.9 per cent to 4,277.99, while the tech-heavy Nasdaq Composite Index slumped 1 per cent to 13,186.18.
Fed chairman Jerome Powell said on Thursday that US inflation is “still too high” despite a recent slowdown.
He told a New York conference that if additional data showed “persistently above-trend growth” or a reversal in labour market cooling, the central bank could reconsider its current pause in rate hikes.
“Investors are not feeling confident that the Fed is close to ending its rate-tightening programme,” Sam Stovall of CFRA told AFP.
Among individual companies, shares in electric vehicle maker Tesla dropped 9.3 per cent after its results missed analyst estimates on Wednesday.
But streaming company Netflix’s shares surged more than 16 per cent after it reported that its subscriber numbers grew nearly 11 per cent to 247 million in the recently ended quarter. AFP
