2024-01-16 22:10:54
Dow Jones loses 231 points… and the ten-year bond yield is above 4% again
The Dow Jones Industrial Average fell today, Tuesday, losing 231 points, coinciding with the rise in ten-year US Treasury bond yields above the 4% level, while Wall Street is still awaiting the results of companies’ operations in the fourth quarter of the ending year, which will be announced successively.
During trading on the first day of the week, after Martin Luther King’s birthday holiday, the decline points in the most famous index in the world represented a rate of 0.62%, and the S&P 500 index, the most comprehensive of sectors of the American economy, lost by 0.37%, while the Nasdaq index, which is full of companies Technology, down 0.19%.
Boeing shares fell by 7.89%, after Wells Fargo Bank downgraded the company’s rating to “equal weight” from “overweight”, amid ongoing problems that airlines are experiencing with the company’s 737 MAX 9 aircraft.
Meanwhile, shares of computer chip maker AMD jumped 8.31%, following analysts’ upbeat comments on semiconductor demand. The chip maker, which is trying to catch up with Nvidia in the artificial intelligence race, recorded its highest levels in 52 weeks, before it announced its quarterly results on January 30.
In this context, the yield on 10-year Treasury bonds, which are very important in various American markets, rose by about 12 basis points, reaching 4.08%, before falling slightly to 4.068%, after a member of the Federal Reserve, Christopher Waller, indicated in a speech The central bank may ease monetary policy more slowly than Wall Street expected.
“Credit card balances are up, but we’re also seeing more growth in savings,” said Tom Heinlein, chief investment strategist at asset manager U.S. Bank. He added: “So far, the consumer seems to be holding up fairly well, according to data from the banks that have announced their business results so far.”
Nearly 30 S&P 500 companies reported fourth-quarter results last year, and of those, 78% beat earnings expectations, according to FactSet.
Investors are also eyeing December retail sales data, which will be released tomorrow, Wednesday, which could fuel recession fears if US consumer spending slows.
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