On Monday, all three key indices of Wall St. had rounded off the session nearly flatlined as a meteoric upsurge in US Treasury bond notes alongside a stronger US Dollar had dented appetite for riskier assets and growth stocks, however, bank stocks advanced as investors positioned themselves for an earlier-than-anticipated rate-hike. If truth is to be spoken, in the day’s Wall Street had witnessed an upscaled caution among market participants as both growth and value stocks had botched to make an affirmative impression, though bank stocks rallied on hopes of a plausible rate-hike by mid-2022 as beforementioned. Aside from that, US Treasury Yields seemed to have restored their safe-haven allures with 10-year US Treasury bond notes hitting 1.60 per cent, the strongest since October 27, taking a hefty toll on growth stocks with technology sectors tumbling as much as 0.11 per cent.
Wall St. end dithered as US Treasury Yields jump
Citing statistics, in the day’s Wall St.
wind-down, trade-sensitive Dow eased 0.04 per cent to 36,087.45 and benchmark S&P 500 shed 0.05 per cent to 4,682.80, while Nasdaq fell 0.04 per cent to 15.853.85. Meanwhile, citing a roaring US bond market, a senior market analyst at OANDA, Ed Moya said, “Wall Street is completely fixated over what is happening in the bond market.
We are starting to see yields are rising and that will, ultimately, signal that there’s a lot more nervousness that the Fed could be a little bit late to the game on delivering a rate hike and will be forced to react a lot quicker, given the inflationary pressures. ”