Highlights
Rising US bond yields and a selloff in Apple depressed equities Thursday but losses were limited and the major indexes recovered late in the day. The Dow Jones industrial average finished flat, the S&P 500 percent eased 0.3 percent, and the Nasdaq lost 0.6 percent.
US Treasury yields rose as the market reacted to stronger than expected employment indicators and Wednesday's Federal Open Market Committee minutes. The dollar and oil prices both declined with oil prices hurt by unexpectedly large increases in U.S. inventories.
FOMC minutes released late Wednesday dampened risk appetite for a second day as investors pared expectations for Fed rate cuts this year. Better than expected ADP employment figures and a drop in jobless claims added to upward pressure on bond yields even as they soothed concerns about a bigger economic downturn.
Major indexes were under pressure after Piper Sandler downgraded Apple, its second analyst downgrade this week. Megacaps generally remained under pressure from rising market rates.
Lagging sectors including technology, consumer discretionary, plus energy on the oil losses. Relatively strong were financials, industrials, health care, and consumer staples.
US Treasury yields rose as the market reacted to stronger than expected employment indicators and Wednesday's Federal Open Market Committee minutes. The dollar and oil prices both declined with oil prices hurt by unexpectedly large increases in U.S. inventories.
FOMC minutes released late Wednesday dampened risk appetite for a second day as investors pared expectations for Fed rate cuts this year. Better than expected ADP employment figures and a drop in jobless claims added to upward pressure on bond yields even as they soothed concerns about a bigger economic downturn.
Major indexes were under pressure after Piper Sandler downgraded Apple, its second analyst downgrade this week. Megacaps generally remained under pressure from rising market rates.
Lagging sectors including technology, consumer discretionary, plus energy on the oil losses. Relatively strong were financials, industrials, health care, and consumer staples.
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.
