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Stocks Increase as Observers Pay Attention to Shifting Treasury Rates

Stocks increased on Thursday morning as we approached the end of the month while investors closely watched the erratic Treasury market.

More than 0.2% was added to the market index traded overall. Both the Nasdaq Composite and the Dow Jones Industrial Average increased by more than 0.1%.

Early trading on Thursday saw the yield on the benchmark 10-year Treasury note reach a new 15-year high as statistics released on Thursday showed a continuing robust labour market with unemployment claims coming in lower than anticipated. Since rates have been rising, concerns of a recession have increased and the stock market has been following the bond market’s lead, bringing equities to new lows. This week, the 10-year yield reached its highest level since 2007, while the S&P 500 touched its lowest level since June.

The S&P 500’s largest laggards were information technology stocks, which had a 0.7% decline last month. After releasing mediocre earnings expectations for the upcoming quarter, Micron Technology saw a more than 4% decline. Amazon, Apple, and Microsoft, three major megacap tech companies, all saw their shares fall.

Trading has had a challenging month and quarter, which ends on Friday. The Dow is anticipated to close out the quarter and the month with losses of more than 3% and 2%, respectively. The S&P 500 is anticipated to end the month down 5% and the third quarter down around 4%. The Nasdaq is anticipated to lose more than 6% and 5%, respectively, for the month and quarter.

Source (CNBC)

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