The Dow Jones Industrial Average experienced a second consecutive day of decline, reflecting a lackluster beginning for Wall Street in the current quarter.
This downturn was influenced by an increase in bond yields and a shift in traders’ expectations regarding a potential interest rate cut by the Federal Reserve in June.
The 30-stock Dow saw a decrease of 420 points, equal to a 1.1% drop. At its lowest point during the trading session, the benchmark dipped by over 500 points. The S&P 500 also declined by 0.9%, while the Nasdaq Composite experienced a 1.2% decrease.
The stock market’s performance in the second quarter has been challenging, with recent inflation data and strong economic indicators contributing to a rise in bond yields.
This development has lessened the likelihood of an interest rate cut by the Fed in June. The 10-year Treasury yield reached its highest level since November 28, while oil prices surged to a five-month high on Tuesday, further intensifying inflationary pressures.
Source (CNBC)