- US stocks edged lower on Wednesday as treasury yields continued their surge higher.
- The 10-Year US Treasury yield jumped to 2.63%, its highest level since 2019.
- Investors are also monitoring the release of Fed minutes later today and additional sanctions on Russia.
US stocks fell on Wednesday as Treasury yields surged to their highest level since 2019, and as investors grappled with additional sanctions against Russia and the imminent release of Federal Reserve's meeting minutes.
The 10-Year US Treasury yield jumped to 2.63% on Wednesday, representing its highest level since 2019. The continued surge in interest rates has translated into higher mortgage rates, which surged above 5% for the first time in years on Tuesday. That surge in interest rates has led to a 40% year-over-year decline in mortgage applications.
Meanwhile, the US is expected to announce another round of sanctions against Russia later today as it continues its attack against Ukraine. Those sanctions are expected to ban all new investments in Russia, as well as increased sanctions against Russia financial institutions and state-owned enterprises.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:
- S&P 500: 4,477.24, down 1.06%
- Dow Jones Industrial Average: 34,366.70, down 0.79% (274.48 points)
- Nasdaq Composite: 13,969.92, down 1.69%
Russia on Wednesday said it had sent $650 million worth of bond payments on dollar bonds in rubles. The move comes after the US Treasury blocked Russia from making dollar debt payments using accounts at American banks.
Michael Burry reactivated his Twitter account and tweeted support for Elon Musk taking a more than 9% stake in Twitter. "Of course @elonmusk buying enough shares to control Twitter would be good for America," Burry said in a now-deleted tweet. "Period."
Billionaire investor Leon Cooperman says the US could enter recession in 2023, thanks to surging oil prices and aggressive Fed tightening. "I think the Fed has totally missed it, and I think we have a lot of wood to chop," he told CNBC on Tuesday.
West Texas Intermediate crude oil rose as much as much as 0.47% to $102.44 per barrel. Brent crude, oil's international benchmark, jumped as much as 0.34% to $107.00.
Bitcoin fell 0.56% to $44,943. Ether prices fell 0.84% to $3,315.
Gold fell as much as 0.15% to $1,930.30 per ounce. The yield on the 10-year Treasury added seven basis points to 2.63%.