On Thursday, stocks dipped throughout the night as Treasury yields rose, and investors absorbed Federal Reserve Chair Jerome Powell's speech.The Dow Jones Industrial Average (DJI) was down around 0.75%, the S&P 500 (GSPC) was down almost 0.9%, and the Nasdaq Composite (IXIC) led the losers, down nearly 1%. Treasury yields rose for the fourth day …
On Thursday, stocks dipped throughout the night as Treasury yields rose, and investors absorbed Federal Reserve Chair Jerome Powell’s speech.
The Dow Jones Industrial Average (DJI) was down around 0.75%, the S&P 500 (GSPC) was down almost 0.9%, and the Nasdaq Composite (IXIC) led the losers, down nearly 1%. Treasury yields rose for the fourth day in a row, adding to the pressure on stocks as investors remained concerned of developments in the Middle East conflict.
Powell stated on Thursday that inflation remains excessive, indicating that the Fed plans to keep interest rates high for an extended length of time as long as economic growth stays robust. In recent days, some analysts, including Mohamed El-Erian, have questioned whether the central bank should lift its inflation objective.
As the third quarter earnings season continues, investors are keeping an eye out for any potential impact of rising interest rates on business performance.
Elon Musk, CEO of Tesla (TSLA), expressed concern Wednesday that increasing financing charges might hinder buyers from affording the company’s electric vehicles, addressing after the company’s results fell short of expectations. Tesla’s stock dropped over 10%. Meanwhile, Netflix (NFLX) shares rose more than 16% after the streaming service reported a surge in member numbers and announced plans to hike fees in the United States.
In economic news, weekly unemployment claims fell to their lowest level since January, indicating that the US labour market remains strong.
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