Breaking News
Investing Pro 0
Last Call for Cyber Monday! Save Now on Claim 60% OFF

U.S. stocks are falling as Treasury yields climb; rates in focus

Published Sep 20, 2023 06:54PM ET Updated Sep 21, 2023 09:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FDX
+0.19%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DRI
+0.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-0.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- U.S. stocks were falling and Treasury yields were rising after the Federal Reserve signaled it will keep interest rates higher for longer, including the possibility of one more increase this year.

At 11:09 ET (15:09 GMT), the Dow Jones Industrial Average was down 173 points or 0.5% while the S&P 500 was down 1% and the NASDAQ Composite was down 1.2%.

The main indices closed lower on Wall Street Wednesday, as the blue-chip Dow Jones Industrial Average dropped just over 75 points, or 0.2%, the broad-based S&P 500 fell 0.9% and the tech-heavy Nasdaq Composite especially hard hit, falling 1.5%. 

Fed takes a hawkish stance

The Federal Reserve held interest rates steady on Wednesday, but still forecast another hike of 25 basis points before the year’s end. 

Additionally, the U.S. central bank updated its quarterly projections showing interest rates falling only a half of a percentage point in 2024 compared to the one percentage point of cuts suggested at the meeting in June.

Goldman Sachs now expects the Fed to begin its interest rate-cutting cycle in the fourth quarter of next year, later than an earlier forecast of a cut in the second quarter.

"Today, participants appeared to move away from the view that monetary policy tightening could weigh on growth with a long lag next year, which weakens one argument for cutting," Goldman Sachs said, in a note.

"We think this means that inflation will have to fall further than we previously assumed for the FOMC to cut."

While there isn’t inflation data for investors to digest today, weekly jobless claims came in at a lower than expected 201,000 last week. In addition, the Philadelphia Fed manufacturing index was a negative 13.5, a far lower than expected reading. Analysts had expected negative 0.7.

The 10-year Treasury yield reached 4.48%.

Varied central bank decisions in Europe

In Europe, Sweden’s Riksbank and the Norges Bank hiked interest rates as expected, while the Swiss National Bank kept its main policy rate unchanged at 1.75%, ending its run of five consecutive increases since it began lifting rates out of negative territory in June 2022.

The Bank of England kept rates at 5.25% after raising rates 14 successive times.

FedEx soars on guidance lift

In corporate news, Darden (NYSE:DRI) Restaurants, owner of the Olive Garden and other chains, beat profit expectations. Pharmacy chain Rite Aid (NYSE:RAD) reports after the closing bell.

Additionally, FedEx (NYSE:FDX) stock jumped 4.2% after the shipping company lifted its annual earnings guidance, while marketing automation firm Klaviyo (NYSE:KVYO) dipped 0.5% on Thursday after its trading debut on Wednesday.

Crude hit by Fed stance

Oil prices dropped sharply Thursday, pulling further back from recent highs after the Fed’s warning on higher U.S. interest rates raised concerns of a further hit to economic activity, potentially denting crude demand.

Data from the U.S. Energy Information Administration, released on Wednesday, showed crude inventories fell just over two million barrels last week, well short of the 5.25 million barrel drop the industry body American Petroleum Institute had reported a day earlier.

The Fed’s hawkish stance also led to the U.S. dollar surging to its highest since early March, making commodities such as oil which are denominated in dollars more expensive for buyers using other currencies.

(Oliver Gray contributed to this item.)

U.S. stocks are falling as Treasury yields climb; rates in focus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (20)
Jack Gold
Jack Gold Sep 21, 2023 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fed is like Groundhog Day, with a bunch of ignorant people and an old man at the head who is for the old people's home
Elia Muswaswa
Elia Muswaswa Sep 21, 2023 1:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you are welcome
Mitchel Pioneer
Mitchel Pioneer Sep 21, 2023 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Wall Street criminals have another floor under the losses.  "Rallies" can run up a 45 degree trend to a closing high, but we certainly can't have the laughingstock of the investing world tank beyond a level that can't be magically "recovered" the next day.  Greatest financial FRAUD in history operating in broad daylight.
First Last
First Last Sep 21, 2023 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"45 degree"?  Slope depends on the chart/ screen/window settings.
Maximus Maximus
Maximus Maximus Sep 21, 2023 12:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is what a soft landing looks like
Stan Smith
Stan Smith Sep 21, 2023 12:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The simple math and reality of centralized and central-bank distorted markets is quite simple: These markets rise and fall on liquidity. Unfortunately, this critical “liquidity” won’t be coming from economic growth, a robust Main Street or a fairly-priced market. Instead, and as expected, it now comes from out of thin air…These markets are just a rigged contrived farce
dylan mulvaney
dylan mulvaney Sep 21, 2023 12:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My main question right now is how much diversity is there in the stock exchange? What percent of CEO's are transgenders?
dylan mulvaney
dylan mulvaney Sep 21, 2023 12:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"US employers to see biggest healthcare cost jump in a decade in 2024"...Bidenomics.
Ella Yassin
Ella Yassin Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good, let USA collapsed... NWO first to collapsed...USD sooner to collapse since failed to be ONE WORLD CURRENCY. who's agenda? who's create? only no brain man will think if it since WW1...
Maximus Maximus
Maximus Maximus Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
okay...
First Last
First Last Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No.  Kremlin trying to conquer Ukraine, the CCP trying to conquer Taiwan, BRICS currency, Trump's 1st term, etc. are examples of NWO, which is about less freedom than the current WO.  NWO is what pro-Putin retrumplicans are aiming for.
Matthew Petyk
Matthew Petyk Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
...Trump was a NWO guy and he was for less freedom????? lolololol... put the pipe down and get some oxygen... omg..
Mark Jannetty
Mark Jannetty Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you have to forgive maxi pad and first, the TDS is very deep. I don't think they can be cured
First Last
First Last Sep 21, 2023 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Matthew Petyk   The coup was about disregarding the people's votes and give pro-Putin Trump dictatorial powers.  Then there's also the book burning, voter suppression, gerrymandering, attacking abortion rights, appointing corrupt, incompetent (but hopefully loyal) judges to back up his un-Constitutional acts (such as pardoning himself), etc.
dylan mulvaney
dylan mulvaney Sep 21, 2023 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed can only do so much in response to bad economic policy. The refuse to mention the word "Biden" in any of the articles since he took office, and just keep talking about the Fed. The reason the Fed has to raise rates because of out of control inflation is not due to Fed spending, it is due to Biden and democrats. It is that simple. There was more inflation in 2022 alone under Biden than all 4 years of Trump combined.
Kerry Ditto
Kerry Ditto Sep 21, 2023 11:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
massive stock mkt rally today?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email