Nasdaq Drops 1.1% as Bond Yields, Oil Rebound, and Rate Hike Fears Weigh
IXIC sits 30% above its 52-week low of $20,690.249.
Summary
The Nasdaq fell 1.1% to 26,945.03 on Wednesday, with the Dow down 285 points and the S&P 500 off 0.6%. Higher bond yields, oil's rebound amid Strait of Hormuz uncertainty, and prospects of another Fed rate hike pressured stocks. Strong September PMI data (composite 58.4, services 58.7, manufacturing 56.7) limited downside but also reinforced rate-hike concerns. AI-related stocks led declines while energy names gained. This follows last week's Fed rate hike and ongoing geopolitical tensions.
Updates
· Wiseek News — Brent climbed over 4% toward $104 after Iran's president rejected US pressure on the Strait of Hormuz. Traders now price a 70% chance of another Fed hike in October.
· CNBC TV18 — The 10-year Treasury yield rose to 5.135%, its highest since July 2007. The five-year auction tailed at 5.033% versus a 4.186% six-auction average. Fed Governor Barr's comments pushed October hike odds to 70% from 55.4%.
· Dow Jones Newswires — The 10-year Treasury yield jumped 0.147 point to 5.113%, highest since July 2007; 30-year hit 5.401%, highest since 2004; 2-year climbed to 4.893%, highest in over two years. Odds of a rate hike next month rose to near 70% from under 50% a week ago.
At the time of this announcement, IXIC was trading at $26,955.93 on NASDAQ in the Technology sector. The 52-week trading range was $20,690.25 to $27,288.79. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.