Stock market today: Dow drops 411 points as yields jump ahead of fresh economic data

Stock market today: Dow drops 411 points as yields jump ahead of fresh economic data

United States Department of the Treasury in Washington, D.C.Wikipedia

  • Stocks fell Wednesday ahead of the arrival of new economic data on growth and inflation.

  • A $44 billion auction of seven-year Treasury notes was met with lukewarm demand.

  • Bond yields rose for a second day, with the 10-year bond climbing seven basis points to 4.61%.

U.S. stocks fell Wednesday for the second day of the week’s short trading, with the Dow Jones Industrial Average falling more than 300 points as Treasury yields continued to climb.

An auction of seven-year Treasuries ran into weak demand, marking the third sale of U.S. government bonds this week, sparking fears of an oversupply amid treasury rate forecasts. higher and longer interest. The Treasury sold $44 billion worth of notes at 4,650%, with reports noting that domestic demand was weaker than average. On Tuesday, a sale of two- and five-year bonds was priced based on weaker investor demand.

The 10-year bond jumped seven basis points to 4.61%.

The bond market sell-off comes ahead of two important data points for investors trying to gauge how interest rates will move for the rest of the year. On Thursday, first quarter GDP will see its first revision, with growth expectations lower than those initially announced for the first three months of the year.

More importantly, on Friday the Bureau of Economic Analysis will release the Federal Reserve’s preferred inflation measure. Price increases measured by the personal consumption expenditure index should be comparable to March’s figures, an increase of 2.7%, according to economists’ estimates. However, an upside or downside surprise could have a big impact on stocks and the market as a whole.

The Nasdaq Composite slipped further from record highs set on Tuesday, as the tech-heavy index was spared wider losses from Nvidia, which rose nearly 1% during the session.

Here is where the US indices stood at the 4 p.m. close on Wednesday:

Here’s what happened today:

In commodities, bonds and cryptocurrencies:

  • West Texas Intermediate Crude oil fell 1% to $79.85 a barrel. Brent crudethe international benchmark, fell 0.9% to $83.41 per barrel.

  • Gold fell 0.8% to $2,336.20 an ounce.

  • The 10-year Treasury yield rose seven basis points to 4.614%.

  • Bitcoin fell 1.6% to $67,286.78.

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