Stocks Sink - Bond Yields Rise as Rate Cut Bets Cool
An article with an analyst's opinion on factors that caused the market movement today.
US stocks experienced a decline on Wednesday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite falling by 0.8%, 0.7%, and roughly 1% respectively. This downturn was particularly significant for tech stocks, which lost almost 1.6%.
The market's optimism about quick interest-rate cuts diminished due to fresh jobs data and the anticipation of the release of the Federal Reserve's meeting minutes.
New data from the Bureau of Labor Statistics revealed a decrease in job openings to 8.79 million at the end of November, the lowest since March 2021, slightly below the expected 8.82 million.
The market's decline also affected bond prices, which have been falling for four consecutive days. This has resulted in the 10-year Treasury yield rising near 4%.
The article suggests that the minutes from the Fed's December meeting, expected to be released later on Wednesday, might provide insights into the Federal Reserve's plans for easing monetary tightening to achieve a stable economic "soft landing".
Source:
https://finance.yahoo.com/news/stock-market-news-today-stocks-extend-losses-to-start-new-year-as-nasdaq-slides-over-1-210059957.html#:~:text=US%20stocks%20slid%20on%20Wednesday,GSPC)%20slipped%20about%200.6%25.