Stock futures continue sell-off fueled by rising bond yields

FAN Editor

Equity futures are pointing to more pain for investors come Thursday morning.

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Dow Jones futures were falling by 1.1 percent. The S&P 500 was dropping by 0.87 percent and the Nasdaq Composite was down by 1 percent.

A continuing surge in Treasury yields prompted the blue-chip index’s biggest pullback since February. Fast-rising bond yields and signs of inflation have led investors to worry that profit margins could narrow, sparking one of the biggest downturns of the year.

The yield on the 10-year U.S. Treasury note rose to 3.211% from 3.208% a day earlier, further building on September’s gain, which was the biggest in a month since January.

The Dow Jones Industrial Average recording its largest single-day point drop since February. Big tech stocks helped fuel the selling as investors weigh the threat of rising U.S. treasury yields and global trade spats.

The Dow tumbled 831.83 points, or 3.15 percent, to 25,598.74. The S&P 500 fell 94.66 points, about 3.3 percent, to 2,786.26. The Nasdaq Composite slipped 315.97 points, or 4.08 percent, to 7,422.05.

Ticker Security Last Change %Chg
I:DJI DOW JONES AVERAGES 25598.74 -831.83 -3.15%
SP500 S&P 500 2785.68 -94.66 -3.29%
I:COMP NASDAQ COMPOSITE INDEX 7422.0499 -315.97 -4.08%

The Nasdaq slid to a 3-month low led by names including Amazon, which dipped into correction territory with shares falling more than 10 percent from their record closing high on Sept. 4. Apple, Microsoft and Facebook also were down on the day.

The International Monetary Fund earlier this week cut its outlook for growth in the global economy to 3.7 percent from 3.9 percent, partly because of worsening trade tensions between the U.S. and China.

In Asia on Thursday, Japan’s Nikkei fell to a one-month low, falling as much as 4.2 percent.

FOX Business’ Leia Klingel and Charles Brady contributed to this report.

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