Stock market today: Indexes slide and yields rise as rate-cut outlook dims
- Stocks slumped Tuesday amid rising bond yields.
- Investors are adjusting outlooks for interest rate cuts from the Fed.
US stocks headed for their second losing session in a row, with major indexes slumping Tuesday morning amid a rise in bond yields.
Investors were put off by a steep jump in the US 10-year Treasury yield, which surged 11 basis points on Monday. The key bond yield jumped above 4.2% for the first time since July.
Though yields have since steadied at around 4.176%, the rise indicates that traders have pared back hopes for a steep easing cycle from the Federal Reserve. Commentary from Fed officials this week calling for "gradual" and "modest" cuts following a streak of hot economic data triggered investors to rethink their expectations.
More commentary will come on Tuesday from Philadelphia Fed President Patrick Harker. Five other officials will speak throughout the week.
Investors are also monitoring further earnings releases. Tesla is scheduled to post its third-quarter performance on Wednesday. Boeing is also due to report on Wednesday, while UPS will report results on Thursday.
Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 5,829.63, down 0.42%
- Dow Jones Industrial Average: 42,789.86, down 0.33% (-141.74 points)
- Nasdaq composite: 18,491.77, down 0.26%
Here's what else happened today:
- Wall Street is divided over the market's fate. Here are the bear and bull cases made by top banks.
- Why famed short-seller Carson Block won't bet against Tesla.
- Wall Street keeps raising its price target on Nvidia. Here's why bullishness endures.
- China is set to become Russia's biggest pipeline gas customer this year.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil was up 0.98% to $71.25 a barrel. Brent crude, the international benchmark, was higher by 0.74% to $74.84 a barrel.
- Gold was higher by 0.49% to $2,752.30 an ounce.
- The 10-year Treasury yield was essentially flat at 4.176%.
- Bitcoin slid 0.82% to $67,078.