As earnings season picked up momentum and Treasury rates reached multiyear highs on Wednesday, stocks fell.
Nearly 1% or 332 points were lost by the Dow Jones Industrial Average. While the Nasdaq Composite fell 1.6%, the S&P 500 traded 1.3% lower.
On Wednesday, the 10-year Treasury yield increased, at one point crossing the 4.9% threshold for the first time since 2007. The popular 30-year fixed mortgage rate’s average rate has suddenly risen to 8%, the highest level since mid-2000.
The markets are attempting to predict when interest rates will reach their high, according to Jamie Cox, managing partner at Harris Financial. Markets are interested in what will happen when rates reach 5%.
J.B. Hunt suffered a loss of about 9% during the day as a result of lower-than-anticipated results, and United Airlines dropped 9.7% after providing dovish forecasts. Morgan Stanley experienced a 6.8% decline and had its worst day since 2020 as the bank’s wealth management sector underperformed despite positive results on both lines.