Wall Street experienced a volatile end on Wednesday, with the stock market feeling increasing pressure from rising oil prices and bond yields. The S&P 500 saw a slight increase of 0.98 points, or less than 0.1%, reaching 4,274.51. Meanwhile, the Dow Jones Industrial Average fell 68.61 points, or 0.2%, ending at 33,50.27. The Nasdaq composite rose by 29.24 points, or 0.2%, closing at 13,092.85.
- September is on track to be Wall Street’s worst month of the year, as it struggles to adjust to the recent surge in Treasury yields.
- Treasury yields continued to rise on Wednesday, reaching levels not seen in over a decade.
- Crude oil prices climbed above $93 per barrel.
Crude oil’s surge positively impacted stocks in the oil and gas industries, resulting in significant gains. Marathon Oil rose by 4.2%, and Devon Energy climbed by 4%. Costco Wholesale also emerged as a winner, with a 1.9% increase in profit for the latest quarter, surpassing analysts’ expectations. On the other hand, NextEra Energy Partners fell by 20.1% after reducing its growth forecast for unit holder distribution due to higher interest rates.
The 10-year Treasury yield rose from 4.55% to 4.63%. This is a considerable increase from 3.50% in May and 0.50% during the early stages of the pandemic. As Wall Street adapts to a new normal of sustained high interest rates, Bank of America strategists predict that yields could continue to rise. Even if the Federal Reserve approaches the end of raising its overnight interest rate, it may maintain the rate for an extended period. The investing landscape has shifted, with bonds offering more attractive yields and becoming a viable alternative to stocks. Consequently, stock prices may experience downward pressure for an extended duration. (Read more stock market stories.)
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
