Forex Analysis & Reviews: Tesla Benefits as Giants Slip, Shares Rise 12% After Quarterly Results
Wall Street Closes in the Red: Bond Yields Pressure Stocks On Wednesday, trading on Wall Street ended with a decline in the indices, amid rising Treasury bond yields, which negatively affected large-cap companies. Investors lost confidence in a rapid rate cut by the Federal Reserve, while corporate news added tension, hitting McDonald's and Coca-Cola stock prices. Bond Pressure and Fed Doubts The yield on 10-year U.S. Treasury bonds reached its highest point in three months. Investors are reconsidering their expectations for future Fed decisions, given steady economic indicators and the upcoming presidential elections. "The market is struggling to digest this latest rise in yields," noted Adam Turnquist, chief technical analyst at LPL Financial, emphasizing that higher rates are putting additional pressure on stocks. Mega Caps Under Fire Shares of large-cap companies sensitive to interest rate changes were in decline: Nvidia dropped 2.81%, Apple lost 2.16%, Meta Platforms (an organization banned in Russia) fell by 3.15%, and Amazon saw a decrease of 2.63%. These tech giants dragged down the tech-heavy Nasdaq index. Market Leaders and Laggards Among the 11 sectors in the S&P 500 index, only utilities and real estate showed positive momentum. All other sectors finished the day in negative territory.
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