Sunday, June 23, 2024

Nasdaq snaps 4-day losing streak as bond yields fall

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Nasdaq snaps 4-day losing streak…and bond yields plummet from 5%

On Monday, the Nasdaq index rose for the first time in 5 days, coinciding with a drop in Treasury yields, far from their highest levels, while investors’ eyes remained on earnings data expected to be announced by U.S. companies. Big tech companies.

By the end of the first day of the week, the Dow Jones industrial average had lost 190 points, representing more than half a percentage point, and the S&P 500 index had lost 0.17%, while the Nasdaq index was alone in the green zone. rise by more than a quarter of a percentage point. In the fixed-income market, the yield on the benchmark 10-year Treasury note rose briefly above the 5% level, before losing more than 15 basis points to register a return of 4.85% in today’s last trade.

Interest rates have risen in recent weeks, and on Thursday the 10-year Treasury yield breached the 5% level for the first time since July 2007. Although Federal Reserve Chairman Jerome Powell said on Thursday that monetary policy may tighten, what Powell said. .. it signaled to the markets that the bank is set to set interest rates at its first meeting next November.

The rapid rise in yields “will highlight the fragile picture of the US economy hiding behind high interest rates,” Tony Dwyer, chief market strategist at Canaccord Genuity, said in a note on Monday.

Stocks ended a tough week with all three indexes in the red as the S&P 500 lost 2.4%, its first weekly loss in three weeks. The Dow Jones fell 1.6%, while the Nasdaq fell 3.2%.

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This week, investors await the announcement of the results of operations of companies, including several major technology companies, such as Alphabet, the parent company of the famous search engine “Google” and “Amazon.” “Meta,” and “Microsoft.”

In Europe, stocks fell on Monday, hit by a rise in government bonds and investors’ worries about the conflict between Israeli occupation and Palestinian resistance in the Middle East, while the Italian index gained more in regional markets. .

The STOXX 600 index of European shares finished down 0.1% in today’s trade after falling more than 3% last week.

As EU leaders prepare for a so-called “humanitarian ceasefire” in the war in Gaza, aid may be delivered, as Israel continues to bombard the besieged territory. Washington has warned that US interests in the Middle East are at grave risk as Israeli airstrikes continue.

Pressure on the index rose as yields on the standard 10-year U.S. Treasury rose above 5%, before it fell, but after European markets closed. US GDP and inflation data are scheduled for release later this week.

“European government bond yields are on a multi-year high, in line with what we’re seeing in the U.S.,” said Laura Cooper, chief strategist at BlackRock.

Oil prices fell more than 2% on Monday, easing investor fears as diplomatic efforts in the Middle East intensified to try to contain the conflict between Israeli occupation forces and Palestinian resistance. Supply disruption.

Brent crude futures were down $2.33, or 2.5%, at $89.83 a barrel, while US West Texas Intermediate crude futures were down $2.59, or 2.9%, at $85.49.

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The session’s losses were the biggest losses for two benchmarks in a single day since earlier this month.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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