Highlights
Rising market rates weighed on equities Wednesday and investor appetite to buy stocks ebbed, apart from megacap favorites. The Dow Jones industrial average eased 0.3 percent while the S&P 500 rose 0.1 percent and the Nasdaq was up 0.4 percent. US Treasury yields and oil prices rose while the dollar declined.
US bond yields ticked up in the afternoon after a dismal outcome in the Treasury 5-year note sale as the auction tailed badly. Yields were already headed higher in the morning after stronger than expected US S&P purchasing managers data.
Megacaps mostly managed to hold onto the morning gains although Apple was a notable decliner, along with Tesla after rising early. Big tech names including Nvidia had a good day, alongside Netflix, which reported better than expected subscriber growth.
Among sectors, best were communications services, technology, financials and energy. Lagging were industrials consumer staples and materials.
US bond yields ticked up in the afternoon after a dismal outcome in the Treasury 5-year note sale as the auction tailed badly. Yields were already headed higher in the morning after stronger than expected US S&P purchasing managers data.
Megacaps mostly managed to hold onto the morning gains although Apple was a notable decliner, along with Tesla after rising early. Big tech names including Nvidia had a good day, alongside Netflix, which reported better than expected subscriber growth.
Among sectors, best were communications services, technology, financials and energy. Lagging were industrials consumer staples and materials.
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.
