Dow Falls More Than 300 Points as Treasury Yields Surge on Rate Hike Concerns
US stocks declined Wednesday, with the Nasdaq down about 1%, as rising Treasury yields reflected investor worry over further Federal Reserve rate increases.
US equities fell on Wednesday, with the Dow Jones Industrial Average tumbling more than 300 points and the Nasdaq Composite dropping roughly 1%, as Treasury yields climbed higher, according to CNBC.
The decline came amid growing concern among investors that the Federal Reserve may pursue additional interest rate hikes, a prospect that has weighed on equity markets as higher yields make bonds relatively more attractive compared with stocks and raise borrowing costs across the economy.
Rising Treasury yields have been a recurring source of pressure on stock markets this year, particularly for growth-oriented and technology shares that are more sensitive to changes in interest rate expectations.
The report did not specify which sectors led the day's declines or provide the exact closing levels for the major indexes, noting only the scale of the Dow's drop and the approximate percentage decline in the Nasdaq.
Investors are likely to continue watching incoming economic data and remarks from Federal Reserve officials in the coming days for further signals on the future path of interest rates.
Sources
- Dow tumbles more than 300 points, Nasdaq drops 1% as Treasury yields surge: Live updates — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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