"NEW YORK (AP) — Wall Street fell sharply on Tuesday as it focused on the downside of a surprisingly strong job market.
The S&P 500 dropped 1.4% to its lowest point in four months. The Dow Jones Industrial Average tumbled 430 points, or 1.3%, and wiped out the last of its gains made for the year so far. Some of the heaviest losses came from Big Tech stocks, which sent the Nasdaq composite to a market-leading loss of 1.9%."
The S&P 500 dropped 1.4% to its lowest point in four months. The Dow Jones Industrial Average tumbled 430 points, or 1.3%, and wiped out the last of its gains made for the year so far. Some of the heaviest losses came from Big Tech stocks, which sent the Nasdaq composite to a market-leading loss of 1.9%."
",,,Such weight has been the main reason the stock market has lost more than 40% of its value since the end of July, after charging higher for much of the year."
"Why is the stock market down today?
Higher yields on T bonds pull investment dollars away from stocks market.
Higher yields on T bonds pull investment dollars away from stocks market.
"What makes bond yields go up?
Yields have been on the march because investors are increasingly taking the Federal Reserve at its word that it will keep its main interest rate high for a long time in order to drive down inflation."
Yields have been on the march because investors are increasingly taking the Federal Reserve at its word that it will keep its main interest rate high for a long time in order to drive down inflation."
"Fed Gov. Michelle Bowman said in a speech Monday that she expects it will likely be appropriate "to raise rates further and hold them at a restrictive level for some time." Restrictive is what Fed officials call high-enough rates to slow the overall economy."
SOURCE:
https://www.usatoday.com/story/money/2023/10/03/stock-market-falls-treasury-yields-rise-shift-to-bonds/71046838007/
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