U.S. stock indexes closed lower on Wednesday as long-dated Treasury yields climbed to a 24-year high, reviving inflation fears following record closes for the S&P 500 and Nasdaq. Meanwhile, premarket trading on Thursday showed ongoing pressure across major index futures as Federal Reserve rate expectations and artificial intelligence financing came under scrutiny.
Wall Street Snaps Winning Streaks As Treasury Yields And Oil Prices Climb
Wall Street closed lower on Wednesday, with the S&P 500 and the Dow snapping four-day winning streaks while the Nasdaq logged its first down day in six sessions. Brent crude settled above $100 per barrel, driven by Iran war-related supply concerns that reignited inflation anxieties following a dramatic climb in long-dated U.S. Treasury yields to a 24-year high.
The Dow Jones Industrial Average dropped 341.11 points, or 0.66%, to 51,180.17. The S&P 500 lost 17.18 points, or 0.22%, to settle at 7,801.75, and the Nasdaq Composite fell 61.19 points, or 0.22%, to 27,538.69. Small-cap stocks underperformed their larger peers, with the Russell 2000 dropping 1.3%.
The third quarter was supposed to be the weak quarter of the year; we were supposed to get a correction,
said Thomas Martin, senior portfolio manager at GLOBALT in Atlanta, as reported by Reuters. That didn’t happen, so it’s three cheers and let’s take some money off the table.
Federal Reserve Meeting Minutes Reveal Division Over Rate Hike Rationale
Financial markets adjusted their outlook following the minutes and ongoing economic data releases.
Premarket Futures Soften Further As AI Funding And Corporate Earnings Take Center Stage
U.S. stock futures remained under pressure early Thursday. Dow futures slipped 0.6%, Nasdaq futures declined 0.5%, S&P 500 futures fell 0.3%, and Russell 2000 futures dropped 0.9%.
Traders evaluate whether massive corporate expenditures on AI technology are beginning to show results, alongside incoming economic indicators including weekly jobless claims and wholesale trade data.
