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In 2023, the Dow Drops More than 400 Points and Turns Negative Due to Rising Interest Rates

As Treasury yields rose to their highest levels since 2007, investors are concerned that rising interest rates would cause the property market to freeze and push the economy into a recession. This contributed to a decline in stocks on Tuesday.

This was the worst day for the Dow Jones Industrial Average since March as it dropped 430 points, or 1.3%. In the course of the session, the S&P 500 dropped 1.4% and hit its lowest point since June. The growth companies suffered some of the greatest losses as a result of the increase in rates, contributing to the 1.9% decline in the tech-heavy Nasdaq Composite.

The Dow lost on Tuesday, dropping 0.4% to end the year in the negative. Even for 2023, the S&P 500 index as a whole is up 10%.

The 10-year Treasury yield last traded at 4.81%, hitting its highest level in 16 years. The benchmark yield has increased over the past month as a result of the Federal Reserve’s promise to maintain higher interest rates for a longer period of time. The 30-year Treasury yield increased to 4.947%, which is also the highest level since 2007. A 30-year fixed-rate mortgage had an average rate that was very close to 8%.

Source (CNBC)

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