The U.S Stock Market Falls for the 4th Day in a Row Due to Recent Treasury Yield Rises

U.S. stocks started the day in a lower position on Friday. The S&P 500 index was on track to experience its fourth consecutive day of losses. This decline was influenced by an increase in Treasury yields and oil prices throughout the week, impacting global markets.

‍

Here's what's happening in the stock market:

‍

• The S&P 500 (SPX) was down by 28 points or 0.7% at a level of 4,249.
• The Dow Jones Industrial Average (DJIA) decreased by 177 points, or 0.6%, reaching 33,234.
• The Nasdaq Composite (COMP) fell by 91 points, or 0.6%, to 14,691.

‍

On the previous day, the Dow Jones Industrial Average closed 250.91 points, or 0.7% lower, at 33,414.17. The S&P 500 dropped 36.60 points, or 0.8%, to end at 4,278, while the Nasdaq Composite lost 128.12 points, or 1%, closing at 13,186.17.

‍

The market is being influenced by several factors:

• Global stocks have faced a challenging week due to the 10-year U.S. Treasury yield reaching its highest level in 16 years, nearing 5%. This has raised borrowing costs, which could potentially impact economic growth.
• Although Treasury yields slightly decreased on Friday, the effects of the earlier rise in the week continue to be felt.
• Federal Reserve officials' comments, particularly those from Chairman Jerome Powell, are closely monitored by investors. There is caution in the outlook for the economy.
• The recent conflict between Israel and Hamas has added to investor concerns, especially as it relates to potential further escalations and the impact on oil prices.
• On the corporate side, investors are looking ahead to upcoming earnings reports from companies like Alphabet, Microsoft, and Amazon, which have played a significant role in the S&P 500's performance in 2023.

‍

As of Friday morning, 74% of the 86 S&P 500 companies that have reported earnings have beaten analysts' profit estimates, compared to 78% during the same period the previous year, according to Bloomberg data.

‍