Wall Street fell after US Treasury yields shot above 3% and oil prices jumped. That sent the S&P 500 index tumbling more than 1% in a broad sell-off and snapping a two-day winning streak.
Wednesday (8/6), the Dow Jones Industrial Average closed down 269.24 points, or 0.81%, to 32,910.9, the S&P 500 fell 44.91 points, or 1.08%, to 4,115.77 and the Nasdaq Composite slipped 88, 96 points or 0.73% to 12,086.27.
In trading this time, Intel Corp shares plunged 5.3% after Citi cut its estimate for the chipmaker for the second time in a week.
Citi pointed to uncertainty about demand for personal computers and expected Intel to announce weaker-than-expected earnings for the second quarter. This also made the shares of other chip companies also fell.
On the other hand, the price of Brent crude oil for delivery in August 2022 soared above US$ 123 per barrel and reached its highest level in 13 weeks.
As a result, the average share of the transportation sector on the Dow Jones index fell 3.8%, which significantly outperformed other major indexes on the day. The energy sector on the S&P 500 was the only sector to end higher.
"The 10-year Treasury yield is up more than 3%. That's probably part of why we're seeing a decline in the market today," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"That level is what people focus on because it represents an increase in interest rates and a reflection of inflation and market volatility."
The benchmark 10-year US Treasury yield rose after the US Treasury saw strong demand for selling the 10-year note.
At the same time, investors are also cautious ahead of US consumer price data released on Friday (10/6) morning. The report is expected to show that inflation remained high in May, although core consumer prices - excluding volatile food and energy sectors - likely fell on an annual basis.
The US Federal Reserve is expected to raise interest rates by 50 basis points at each of its June and July meetings, with a similar move likely in September, in a bid to fight inflation.
source : https://id.tradingview.com/
