London, Wednesday, 01 March 2023
As bond yields continue to rise, all three of the main US indices were down on Wednesday. The 1-year Treasury yield increased above 5%, and the standard 10-year yield surpassed 4% for the first time since November.
The S&P 500 and the Nasdaq both experienced declines of 0.6% and 0.7%, respectively, while the Dow Jones dropped 64 points. Investors reviewed the prospects for growth and monetary policy in the interim.
German inflation data that were hotter than anticipated supported the case for further rate rises while tempering some optimism about strong Chinese manufacturing data.
According to the most recent ISM report, domestically, the US manufacturing sector shrank in February for the fourth straight month.
Investors were sufficiently alarmed by the market movement and the rise in Treasury yields to steer clear of technology and other high-growth companies.
In terms of corporate losses, Kohl's dropped more than 2% after the retailer failed to meet expectations for quarterly sales and earnings.
(Written by: The Decision Maker - Finance editors)
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