An intensifying bond selloff sparked new losses on Wall Street on Tuesday, wiping out what was left of the Dow Jones Industrial Average’s gains for the year and pushing the yields on Treasurys to fresh multiyear highs. Read today’s full markets roundup here.
Yields have surged in recent weeks as the U.S. economy’s resilience has dashed investors’ hopes that the Federal Reserve could soon switch to cutting rates. Rising yields are also giving investors another way to earn returns, which has been denting the appetite for risky assets like stocks.
Among today’s stock-market victims: the Dow industrials, which had their worst day since March.
On Tuesday, new data showed job openings increased to 9.6 million in August, from 8.9 million in July.
Stock indexes fell. All three major U.S. indexes were down by more than 1%. The Dow industrials dropped about 430 points and are in the red for 2023 so far.
Treasury yields climbed further. The yield on the 10-year U.S. note settled at 4.801%, its highest level since early August 2007.
McCormick’s stock dropped. The spice company’s quarterly profit fell from a year ago. Sales rose, as higher pricing offset a decline in volume.
Netflix shares gave up early gains. The stock finished lower after first rising following the Journal’s report that the company plans to raise the price of its ad-free service.
Point Biopharma stock surged. Eli Lilly is buying the company, which has a pipeline of cancer therapies.
The dollar rally took a breather. The WSJ Dollar Index was little changed after closing at its highest level of the year a day earlier.
Overseas stocks declined. Indexes fell across Europe and Asia, with Hong Kong’s Hang Seng falling 2.7%. Markets in mainland China are closed this week for a holiday.
