Thursday, February 22, 2024
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S&P 500 Declines On Thursday As Rates Climb; Dow Rises Due To Salesforce’s Gain: Constant Updates

Thursday saw a decline in S&P 500 futures as investors worried about an ongoing rise in interest rates.

S&P 500 futures down by 0.5%, while Nasdaq-100 futures decreased by 0.8%. When Salesforce shares surged on a great quarter and positive forward outlook, Dow Jones Industrial Average futures defied the trend and managed to post a slight gain.

The higher rates are beginning to split the equity market, according to Smith Capital Investors, chief investment officer. “It’s glaringly clear for equities that we could be in an environment where growth is not coming in as high as we would like, and inflation is not coming down as fast as we would like,” Smith Capital Investors said.

The benchmark 10-year note yield was trading above 4% on Thursday as rates continued to rise. The yield on 2-year notes reached levels unseen in more than ten years.

The S&P 500 and Nasdaq Composite both experienced losses on Wednesday, while the Dow reported a little gain. For the first time since December, the S&P 500 and the Nasdaq are expected to have a second straight down week. While this is happening, the Dow is on course to have its first negative week in five since May 2022.

The early 2023 rally has taken a hit as a result of the rise in bond yields and market anxiety over a possible larger-than-expected Federal Reserve rate hike.

Salesforce and Okta shares increased in overnight trade due to strong earnings and forecast in the corporate profits sector. Shares of Silvergate Capital fell more than 40% as a result of the firm delaying the release of its 10-K annual report.

Popular with individual investors, Tesla shares dropped 5% after the company’s much-anticipated investor day on Wednesday failed to reveal any information on any next-generation vehicles. The fall put pressure on the futures of the Nasdaq 100 and S&P 500.

Source (CNBC)

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