US stocks open sharply lower. Yields sharply higher | Forexlive
The major US stock indices are moving sharply to the downside after the stronger than expected core PCE data.
The declines are led by the NASDAQ index which is down about 1.5%. The Dow Industrial Average is down about 1%.
A snapshot of the market currently shows:
- Dow Industrial Average -352.76 points or -1.06% at 32801.16
- S&P index -49.16 points are -1.23% at 3963.17
- NASDAQ index -179.73 points or -1.55% at 11410.57
- Russell 2000-26.73 points or -1.40% at 1881.33
Of course yields are helping the move to the downside is they are up sharply after the PCE data:
- two year yield 4.80% +10.08 basis points
- five year yield 4.218% +11.4 basis points
- 10 year yield 3.955% +7.4 basis points
- 30 year yield 3.918% +4.0 basis points
The high yield in the 10 year reached 3.978% yesterday. Of course, the 4% level will be a key natural resistance hurdle to get to and through.
The 10 year yield has moved up 62 basis points this month. Recall the month it started with the jobs report which showed stronger-than-expected job gains of 517,000. On that day the tenure yield moved up to 3.55%. Since then, the yield has continued to trend up to 43 basis points as the market adjusted to a Fed that was like in the keep rates steady for longer than expected. It then transitioned into a fed that is likely to raise rates potentially more than expected.