The 10-year Treasury yield jumped to its highest level since January 2019
Rising bond yields put pressure on the market today, after the 10-year Treasury yield jumped above 2.78%, its highest level in three years. The Dow and tech-heavy Nasdaq both finished with steep triple-digit losses, as investors fled growth stocks in anticipation of higher interest rates. All five FAANG stocks, as well as Microsoft (MSFT), finished with losses of 2% or more. Meanwhile, Wall Street is looking ahead to tomorrow's inflation data via the consumer price index (CPI), as well as earnings from several bank stocks later in the week.
Continue reading for more on today's market, including:
- Bull signal flashing for rebounding solar stock.
- Wells Fargo stock landed a bull note ahead of earnings.
- Plus, 5 cannabis stocks to watch; how to use iron condors; and unpacking AT&T stock's surge.
The Dow Jones Average (DJI - 34,308.08) dropped 413 points, or 1.2% for the day. Verizon (VZ) led the small number of gainers with a 0.7% rise, while Microsoft (MSFT) dropped to the bottom of the index with a 3.9% loss.
The S&P 500 Index (SPX - 4,412.53) lost 75.8 points, or 1.7%, for the day, while the Nasdaq Composite (IXIC - 13,411.96) fell 299 points, or 2.2% in today's session.
Lastly, the Cboe Market Volatility Index (VIX - 24.37) added 3.2 point, or 14.9% for the day.
5 Things To Know Today
- Elon Musk will not join Twitter's board after all, and analysts are speculating on what that could mean for the stock's future. (CNBC)
- China-based tech stocks, and video game stocks in particular, surged after the country’s media and entertainment regulator approved its first licenses since July. (MarketWatch)
- MORE Act momentum keeps cannabis sector in focus.
- An explanation of the iron condor options strategy.
- Analysts targeted AT&T stock today.
There were no earnings of note today.
Oil Prices Hit 6-Week Low
Oil prices fell today as Covid-19 shutdowns in China put pressure on the commodity. May-dated West Texas Intermediate (WTI) crude losing $3.97, or 4%, to settle at $94.29 a barrel -- the lowest level for a front-month contract since February 25.
Gold prices rose for the third straight day. June-dated gold added $2.60, or 0.1%, to settle at $1,948.20 an ounce -- the highest settlement for the front-month contract since March 31.