Wall Street falters on rising yields, geopolitical risks
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
CBOE Volatility index hits over one-month high
Pfizer gains on report Starboard Value takes $1 bln stake in co
Oil stocks track crude prices higher
Indexes down: Dow 0.5%, S&P 500 0.3%, Nasdaq 0.4%
Updated at 11:50 a.m. ET
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 7 (Reuters) -U.S. stock indexes fell on Monday, pressured by rising Treasury yields as markets recalibrated expectations for the Federal Reserve rate cuts, while rising conflict in the Middle East kept traders on the sidelines.
U.S. Treasury yields rallied as investors reassessed the Fed's rate path, with the yield on benchmark 10-year notes US10YT=RR exceeding 4% for the first time in two months, and the two-year yield US2YT=RR also briefly rising to 4%.
Investors are pricing in an over 83% chance of a 25 basis point rate cut at the Fed meeting in November, according to the CME's FedWatch tool, dialing back bets on a 50 bps cut after Friday's stronger-than-expected non-farm payrolls data.
"The interest rate outlook appears murky, and it will depend upon the strength of the economy or (the) lack thereof over the next year," said Tony Miano, investment strategy analyst at the Wells Fargo Investment Institute.
The yield spike cast a shadow over rate-sensitive megacap growth stocks, dragging down Tesla TSLA.O 2.3% and Alphabet GOOGL.O 0.7%. Amazon.com AMZN.O fell nearly 2.5% after a Wells Fargo downgrade.
The Dow Jones Industrial Average .DJI fell 206.27 points, or 0.49%, to 42,146.48, the S&P 500 .SPX lost 18.18 points, or 0.32%, to 5,732.89 and the Nasdaq Composite .IXIC lost 62.58 points, or 0.35%, to 18,075.26.
Escalating geopolitical tensions in the Middle East are also hurting investor appetite.
The CBOE Volatility index .VIX, Wall Street's fear gauge, rose as high as 21.45, and was last at a nearly four-week high of 20.77.
Earlier on Monday, Hezbollah fired rockets at Israel's Haifa, while Israeli forces looked poised to expand ground raids into south Lebanon.
Most S&P 500 sectors were lower, with energy stocks a notable outlier, .SPNY up 0.7%. Crude prices extended gains on concerns about supply disruptions from the Middle East conflict, boosting shares of oil companies. O/R
Shares of Pfizer PFE.N rose 3.1% on Monday after a report that activist investor Starboard Value has taken a roughly $1 billion stake in the drug giant.
Meanwhile, Air Products and Chemicals APD.N was one of the top S&P 500 gainers, up 7.8% on a report that activist hedge fund Mantle Ridge has built a position in the company.
This week, investors are keenly awaiting the consumer price index data, due on Thursday, and comments from several Fed officials, including Michelle Bowman, Neel Kashkari and Raphael Bostic who are slated to speak later on Monday.
Third-quarter earnings for S&P 500 companies also begin this week, with several major banks scheduled to report on Oct. 11.
Earnings will be a significant test for Wall Street's rally this year - the S&P 500 is up about 20% year-to-date and stands near record highs.
Goldman Sachs raised its 2024 year-end S&P 500 .SPX target to 6,000 from 5,600, and also lowered its odds of a U.S. economic recession to 15% from 20%.
Declining issues outnumbered advancers by a 2.46-to-1 ratio on the NYSE, and by a 2.3-to-1 ratio on the Nasdaq.
The S&P 500 posted 34 new 52-week highs and one new low, while the Nasdaq Composite recorded 68 new highs and 81 new lows.
Reporting by Lisa Mattackal and Pranav Kashyap in Bengaluru; Editing by Shinjini Ganguli
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
