Highlights
Equities ended narrowly mixed Wednesday after a rebound effort faltered as investors focused on rising interest rates and the ongoing rally in oil prices.
The Dow Jones industrial average eased 0.2 percent, the S&P 500 was flat, and the Nasdaq was up 0.2 percent. US Treasury yields and oil prices rose while the dollar declined. Rising bond yields hurt growth stocks with 10-year note yields up another 8 basis points to 4.62 percent.
Dip-buying after Tuesday's selloff ebbed in the afternoon as bond yields rebounded and as the big move up in oil prices renewed inflation concerns. West Texas intermediate crude rose nearly 4 percent Wednesday to set one-year highs, to add to their gains this week, on new signs of tightening supplies. Investors generally see WTI oil breaking above $100 to test $110.
Weakness in megacaps weighed on the major averages. Among sectors, consumer discretionary and consumer staples had a bad day, along with health care and utilities. On the positive side, rising oil prices helped energy stocks outperform again, along with communications services and industrials.
The Dow Jones industrial average eased 0.2 percent, the S&P 500 was flat, and the Nasdaq was up 0.2 percent. US Treasury yields and oil prices rose while the dollar declined. Rising bond yields hurt growth stocks with 10-year note yields up another 8 basis points to 4.62 percent.
Dip-buying after Tuesday's selloff ebbed in the afternoon as bond yields rebounded and as the big move up in oil prices renewed inflation concerns. West Texas intermediate crude rose nearly 4 percent Wednesday to set one-year highs, to add to their gains this week, on new signs of tightening supplies. Investors generally see WTI oil breaking above $100 to test $110.
Weakness in megacaps weighed on the major averages. Among sectors, consumer discretionary and consumer staples had a bad day, along with health care and utilities. On the positive side, rising oil prices helped energy stocks outperform again, along with communications services and industrials.
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.
