Dow, S&P 500 skid lower at Wednesday’s open as 10-year Treasury jumps to 1.42% ahead of second day of Powell testimony

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U.S. stock skidded lower at Wednesday’s open as investors continued to react to a persistent rise in bond yields, with the 10-year Treasury note rising above 1.4% and putting pressure on equities, a day after Federal Reserve Chairman Jerome Powell attempted to soothe the market by emphasizing that easy-moeny policies would be in place for the foreseeable future. Powell is set to deliver a second day of testimony in front of the House starting at 10 a.m. Eastern. Bond yields began to perk up again on Wednesday after the Food and Drug Administration said that Johnson & Johnson’s
JNJ,
+0.56%
single-dose COVID-19 vaccine candidate has no unexpected safety concerns, in a step that moves the experimental vaccine one step closer to emergency authorization. The Dow Jones Industrial Average
DJIA,
-0.29%
was off less than 0.1% and trading flat, the S&P 500 index
SPX,
-0.35%
was trading 0.1% lower at 3,876, while the Nasdaq Composite Index
COMP,
-0.70%
was declining 0.5%. The 10-year Treasury note
TMUBMUSD10Y,
1.419%
hit a rate at around 1.42%.

Stock markets have wavered in recent days following a strong start to the year, with highflying tech companies leading declines. Investors said a rise in government bond yields, driven by improving growth prospects and rising inflation expectations, has accelerated a rotation out of the tech stocks that led markets higher during the pandemic, and into the stocks best placed to benefit from an end to lockdowns.

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