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US stocks bounce back after tech sell-off drives biggest loss since May

Isabelle Lee   

US stocks bounce back after tech sell-off drives biggest loss since May
Cryptocurrency2 min read
  • US stocks recovered after a sell-off that drove the market to its biggest loss since May.
  • The 10-year US Treasury yield fell around 1.1 basis points to 1.525% after rising to its highest since the end of June.
  • Bitcoin and gold rose, while oil slipped.

US stocks bounced back Wednesday after a massive tech sell-off in the previous session drove the stock market to its biggest decline in months.

The benchmark S&P 500 rose Wednesday after it closed lower by 2% to its worst one-day performance since May. The tech-heavy Nasdaq and the Dow Jones Industrial Average also gained.

Here's where US indexes stood at the 9:30 a.m. ET open on Wednesday:

The 10-year US Treasury yield shed around 1.1 basis points to 1.525% after rising to 1.534%, its highest since the end of June after Federal Reserve officials signaled the possibility of scaling back its support for the economy as early as November. Meanwhile, the five-year rate fell below 1%.

Tech stocks are the most sensitive to changes in bond yields, which explains Tuesday's rout. A rise in global bond yields makes the returns on stocks look less attractive.

The US debt ceiling crisis is also spooking investors this week.

Senate Republicans Monday night struck down a bill that passed the House that would have raised the debt ceiling and prevented a government shutdown.

Democrats, meanwhile, are rushing to raise the government's $28.4 trillion borrowing limit. They have until October 18 to do so.

Treasury Secretary Janet Yellen, who reiterated her call for bipartisanship, told lawmakers she would try to exhaust extraordinary measures if Congress didn't act to raise or suspend the debt limit by that date.

Bitcoin on Wednesday rose 1.2% to $42,287 after falling the previous two days.

Oil prices scaled back after soaring above $80 for the first time in three years as a shortage in natural gas spurs demand.

West Texas Intermediate crude oil slipped 0.70% to $74.76 per barrel. Brent crude, oil's international benchmark, fell 0.85% to $78.42 per barrel.

Gold rose as much as 0.21%, to $1,739.08 per ounce.

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