The 10-year treasury yield continued its climb and rose about six basis points to 3.95%. This marked a return to its level prior to the weak jobs numbers on Friday that raised concerns of an economic downturn.
In a sharp reversal from the highs of the day, benchmark indices on Wall Street ended lower after a positive start to the trading day.
The Dow Jones fell over 700 points off the day’s high to end 0.6% or 230 points lower, while the S&P 500 shed 0.8%. The tech-heavy Nasdaq Composite saw a 1% fall. At the highest point of the day, the Dow had risen 500 points, while the S&P 500 and Nasdaq were up nearly 2% each.
Losses were led by Nvidia, which fell over 5%, while Super Micro Computer saw its stock plunge 20% after missing analyst estimates in its fourth quarter. Tesla shares also fell over 4%. In late trading, Warner Bros. Discovery Inc., the parent of CNN and TNT, plunged after posting a charge of $9.1 billion as it wrote down the value of its traditional TV networks.
The 10-year treasury yield continued its climb and rose about six basis points to 3.95%. This marked a return to its level prior to the weak jobs numbers on Friday that raised concerns of an economic downturn.
Investors shunned the 10-year US bond auction, which drew a yield that was well above the pre-sale indicative level. The weaker-than-expected demand signaled the recent rally may have run its course. Treasuries also came under pressure as 17 blue-chip companies offered $31.8 billion of debt, the highest amount of US investment-grade issuance this year.
“Stocks remain vulnerable,” said Fawad Razaqzada at City Index and Forex.com. “More evidence of a bottom is needed to excite the bulls again. Overall, sentiment remained cagey. Not many people were confident to buy this latest dip, especially with US CPI looming next week.”
Mexico’s peso rallied after the BOJ signaled it would be cautious about raising interest rates, easing pressures from a selloff in yen-funded bets on riskier assets. The Japanese currency slid over 1.5%.
