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Stock Market Today: Dow Stumbles as Jump in Rates Rattles Markets

AuthorYasin Ebrahim
Published 09/26/2022, 04:09 PM
Updated 09/26/2022, 04:13 PM
© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow fell Monday after reversing early-day gains as rising Treasury yields spooked investors amid growing fears of a recession

The S&P 500 fell 1%, the Dow Jones Industrial Average 1.1%, or 329 points, and the Nasdaq was down 0.60%.

Tech gave up its intraday gains, pressured by an ongoing climb in Treasury yields as Fed members suggest measures to slow growth including rate hikes increase the chance of the economy falling into recession.

Atlanta Federal Reserve president Raphael Bostic said the Fed “still has a ways to go” to bring down inflation. Bostic’s remarks come hours after Boston Fed President Susan Collins said higher unemployment would be needed to help curb inflation.

The U.S. 10-Year Treasury yield climbed to nearly 4%, while the U.S. 2-Year Treasury climbed to about 4.3% to a 15-year high.

Apple (NASDAQ:AAPL), however, weathered the storm to end the day roughly flat following positive commentary on iPhone demand from JPMorgan.

JPMorgan cited the Wave7 August survey showing Apple’s new product line is expected to fare better than the iPhone 13.

Chip stocks also added pressure on the tech sector, driven by NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Micron Technology Inc (NASDAQ:MU) down more than 2%.

Utilities, a bond-proxy that is less attractive in a rising rate environment, also played a role in the market selloff.

Energy fell more than 2% as oil prices continued to tumble on worries that worsening global growth will further dent energy demand.

“At current levels, it appears the market is now pricing-in the typical impact of a deep recession,” ANZ Research said in a recent note, though added that the selloff in oil “could see OPEC intervene again.”

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Halliburton Company (NYSE:HAL), ONEOK Inc (NYSE:OKE), and Baker Hughes Co (NASDAQ:BKR) fell sharply with the latter down more than 5%.

Consumer stocks, however, were the relatively outperforming sector on the day, lifted by a surge in casino stocks after Macau said it would resume visitation access from Mainland China through tours and e-visas.

Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), and Melco Resorts & Entertainment Ltd (NASDAQ:MLCO) were up double-digits.

In other news, PG&E Corp (NYSE:PCG) was up more than 1% as the company is set to replace Citrix Systems (NASDAQ:CTXS) in the S&P 500.

Latest comments

Rates dont rattle market, Biden does
Get out of the Market before you become another sheep for the slaughtery, Don't Get FOMO or Buy Because Is suposely cheap in value investing, Be Patient Till this Market Hits Rock Bottom, Otherewise, you'll lose big Money!!!, This Downside Is Far from Over
all bull baloney, all rigged.
I am not bothered about Republicans,Democrats,Mutual Funds,and their managers,and HNW Individuals,with big salaries,cars,house etcbut about those investors having not much savings,and most of the savings is invested in Market and Mutual Funds,exit with a minor loss,keep it all cash,your savings are for the rainy day which will be handy,otherwise by Fed rate hikes ,market will fall more and savings value will diminish and not help you much in the hard times,like your umbrella with holes will still you get sick with fever,and everyone will be healthy,but these people.
today market is bullish
today market is bullish
today market is bullish
I am not expert,i suggest sell all the risky stocks and stay with the cash,if recession is hard,it will help in the rainy day as individual investors should exit as mutual funds will keep more cash to sustain losses,which individual investor will not have.Exit from mutual funds is good ,as stocks will fall more,rise less,better exit as they are not HNW Individuals who have many umbrella's for rainy days
Take it easy. Selling low is one of the worst things done by investors. Another one is buying high.
Just as i said,i am not expert,but Fed wants to hike rates more and till Dec ending might be 4%,then if you sell,value will fall.We are not HNW Individuals and our savings are invested in market and Mutual Funds.Hard earned savings are for rainy days,not whimsical predictions,that may come true,if not ,hard earned savings invested will not be helping you in the rainy days,as valuation can fall,MF managers will lose a little of their bonus,but our savings will be wiped out and will not be an umbrella on the rainy day
Market is hardly recover
good
The country is a hot mess. And it looks like things will only deteriorate.
The market will find bottom, when both media and government will admit the truth: stagflation is here. In other words, present stretch is kind of selling on rumor (about stagflation) and buying on news later (when stagflation is admitted). Of course, the admittance point will happen only after November elections.
262 pts to ***through 29,000. may happen by friday.
Fact check: The markets and economy are not doing poorly because the Fed is raising interest rates, they are doing poorly because we have a demented potato in the White House pushing unsustainable leftist economy policy. There is a reason that socialism ends in breadlines and gulags. Brandon has put the economy into a situation of hyper-inflation and declining GDP, and the Fed can only print so much money to try and bail out bad economic policy.
Man, that is pure delusion. You post nothing financially useful. All you do is hate on Dems. Go play on *****social with the rest of the gullible folks.
@Maurice @Jeff my condolences for you being ratio'ed
Who Cares. You’re all, going to be in the same spot after the midterns. LOOSERS!!!!
Higher and higher interest rates and inflation, fed continue selling assets. Dollar increasing too much. Sell all stocks now or go broke.
in my opinion...Energy is the key, if this route in the energy markets continues then this inflationary cycle may weaking and signaling an ending on the horizon. I'm expecting another break in the stock markets to start after a dead cat bounce in the next 10 days. we could see a 2500 point drop in the Dow30 on a single day before this is over.. a medium term bottom should come in the Last week of October or the first week in November.
drill baby drill!
 lol, good one :)
with the dollar getting stronger and energy pricesa crashing, commodity prices dropping, and a economic slowdown starting to take hold de-flation maybe on the horizon.
The markets are rattled by stagflation. Produced by Biden & Co. Period.
 Maybe, you should try to improve your manners; improving knowledge is clearly beyond your capacity. The market was very strong under Trump and it is dismal under Biden. Deal with this reality.
Trump vs Biden. Who cares about 0bama?
So your knowledge of financial history is what, 8 months?
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