Highlights
Another day of rising US bond yields hit stocks hard for a second consecutive day Thursday as market sentiment reeled from Wednesday's hawkish Federal Reserve messaging.
Growth stocks including megacaps led the selloff on fear that interest rates may go higher and remain higher for longer than investors expected.
The Dow Jones industrial average lost 1.1 percent, the S&P 500 declined 1.6 percent, and the Nasdaq dropped 1.8 percent. The dollar and oil prices retreated.
Equities losses were nearly across the board with most sectors down more than 1 percent. Weakest groups included consumer discretionary, information technology, industrials, materials, and real estate. Rising interest rates whacked real estate hardest, with a weaker than expected existing home sales report adding insult to injury. Big homebuilders including Pulte, DR Horton, KB Home, and Lennar saw losses of 3-4 percent.
Consumer discretionary shares had a terrible day, led by a 4.4 percent drop in Amazon and a 2.6 percent loss for Tesla. Travel & entertainment suffered, with Caesar's Entertainment down 5.3 percent. On the positive side, FedEx rallied 4.5 percent after topping earnings expectations.
Growth stocks including megacaps led the selloff on fear that interest rates may go higher and remain higher for longer than investors expected.
The Dow Jones industrial average lost 1.1 percent, the S&P 500 declined 1.6 percent, and the Nasdaq dropped 1.8 percent. The dollar and oil prices retreated.
Equities losses were nearly across the board with most sectors down more than 1 percent. Weakest groups included consumer discretionary, information technology, industrials, materials, and real estate. Rising interest rates whacked real estate hardest, with a weaker than expected existing home sales report adding insult to injury. Big homebuilders including Pulte, DR Horton, KB Home, and Lennar saw losses of 3-4 percent.
Consumer discretionary shares had a terrible day, led by a 4.4 percent drop in Amazon and a 2.6 percent loss for Tesla. Travel & entertainment suffered, with Caesar's Entertainment down 5.3 percent. On the positive side, FedEx rallied 4.5 percent after topping earnings expectations.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
