On Monday, the Nasdaq Composite made a small gain as Treasury yields dropped from their highs as investors anticipated the announcement of corporate profits from major players in the tech sector.
The S&P 500 dropped 0.17% to 4,217.04 and the Dow Jones Industrial Average lost 190.87 points, or 0.58%, to finish at 32,936.41. The tech-heavy Nasdaq Composite increased 0.27% to end the afternoon at 13,018.33.
The benchmark 10-year Treasury note yield momentarily reclaimed the important 5% threshold before gradually declining. About 4.85% was the price at the latest trade.
Interest rates have increased recently, and on Thursday the benchmark 10-year Treasury yield broke above 5% for the first time since July 2007. Jerome Powell, the head of the Federal Reserve, said in remarks on Thursday that monetary policy might become much tighter. This seems to have fueled market anxiety and supported the increase in Treasury yields. The benchmark yield, according to some analysts, may still have some opportunity to grow.
According to Canaccord Genuity’s Tony Dwyer, senior market strategist, the sharp increase in yields “could worsen an already declining economic picture that is concealed by higher rates.”
Source (CNBC)
