U.S. stocks tick lower as Treasury yields resume climb
BNN Bloomberg
U.S. stocks fell as the selloff in Treasuries resumed, with the rates market hedging the possibility that the Federal Reserve will tighten policy more aggressively. The dollar gained.
U.S. stocks fell as the selloff in Treasuries resumed, with the rates market hedging the possibility that the Federal Reserve will tighten policy more aggressively. The dollar gained.
The S&P 500 fell, reversing gains of as much as 1.2 per cent. The tech-heavy Nasdaq 100 extended losses, underperforming major benchmarks, as the jump in yields weighed on growth-related stocks.
Treasury yields rose across the curve, with the policy-sensitive two-year rate climbing 14 basis points 2.72 per cent as traders priced in 50 basis-point rate hikes at each of the next three meetings. The dollar gained against most of its major peers following the rise in yields.
On the earnings front, Tesla Inc. gained after posting record profits that blew past estimates and with Elon Musk predicting output will grow at a fast clip for the rest of the year.
Airlines rallied as American Airlines Group Inc. said corporate and international flying was coming back and projected a second-quarter profit. United Airlines Holdings Inc. surged 12 per cent after forecasting a profit this year.
While inflation and central-bank reactions to the spike in rising prices are big drivers of markets right now, earnings have been important this week too, especially after Netflix Inc.’s selloff, Chris Gaffney, president of world markets at TIAA Bank, noted.
