US Stocks Retreat on Elevated Bond Yields
US stock indices closed lower on Wednesday as concerns over high yields returned to the forefront, threatening earnings projections for credit-sensitive sectors. The S&P 500 and the Nasdaq 100 both dropped 0.2% from their peaks, while the Dow shed 341 points. Oil prices softened from earlier gains, while longer-maturity yields pulled back following a strong 10-year Treasury note auction. Still, tight credit conditions persisted, and FOMC members agreed that higher rates are needed to tame inflation, according to the latest meeting minutes. AI chipmakers and hyperscalers were mostly lower as high yields and wider credit spreads increasingly weighed on orders, with Nvidia down 0.7% and AMD shedding 0.5%, while Meta lost 2.4% and Oracle fell 0.8%. This came despite positive sector news, with SpaceX set to borrow $40 billion to buy Nvidia chips. SpaceX fell 2.5%, while Tesla lost 0.7%. Meanwhile, pharmaceutical and consumer staples stocks gained.
US stock indices closed lower on Wednesday as concerns over high yields returned to the forefront, threatening earnings projections for credit-sensitive sectors. 2% from their peaks, while the Dow shed 341 points. Oil prices softened from earlier gains, while longer-maturity yields pulled back following a strong 10-year Treasury note auction. Still, tight credit conditions persisted, and FOMC members agreed that higher rates are needed to tame inflation, according to the latest meeting minutes.
8%. This came despite positive sector news, with SpaceX set to borrow $40 billion to buy Nvidia chips. 7%. Meanwhile, pharmaceutical and consumer staples stocks gained.