Finance

Wall St slides as high bond yields fan cost worries

Wall St slides as high bond yields fan cost worries

With the 10-year yield hitting the mark of 3 percent, the financial markets all around the globe have fallen rapidly with European and Asian indexes trading on Wednesday.

There were some upbeat quarterly earnings from major companies, but that was dampened by the market's concerns over rising bond yields and borrowing costs. Retailers and industrial companies also rose.

Other technology stocks in the FAANG group, Facebook, Amazon.com Inc and Netflix Inc, also weighed on the Nasdaq. 3M said raw materials costs are rising, especially for materials derived from crude oil, whose price has been rising, and transportation and logistics expenses are rising as well.

The Dow Jones industrial average gave up 424.56 points, or 1.7 percent, to 24,024.13.

On Wednesday, the US stocks fell drastically adding up to the losses of the last session, as the investors fretted over interest rates reaching multiyear highs. The Nasdaq composite dipped 3.61 points, or 0.1 percent, to 7,003.74. A new four-year high for the yield on the benchmark 10-year Treasury note, which crossed above 3% for the first time since January 2014 on Tuesday, added to the negative tone on Wall Street.

The Dow Jones industrial average fell 97, or 0.4 percent, to 23,928.

US crude oil futures settled 1.4 per cent lower at $67.70 a barrel as concerns faded over the possibility that the United States might reinstate sanctions against Iran.

So far, 31 percent of S&P 500 companies have reported earnings, 81.2 percent of which came in above consensus estimates. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February. This is partly due to the company's president Brad Halverson's statement, according to which the company's forecasts are that the first quarter will be the culmination of the year. The maker of Maytag and KitchenAid products rose 4.4 percent to $156.93.

METALS: Gold rose 0.7 percent to $1,333 an ounce.

Declining issues outnumbered advancing ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners. Comcast rose 1.6 percent to $33.85 and Fox gained 1.1 percent to $36.42.

The Russell 2000 is up 17.77 points, or 1.2 percent. Brent crude, used to price global oils, fell 27 cents to $73.59 a barrel in London.

Japan's benchmark Nikkei 225 rose 0.9 percent, helped by the weaker yen.

CURRENCIES: The dollar edged up to 108.67 yen from 108.65 yen.

Benchmarks in Hong Kong and South Korea fell as much as 1% by midday, while a number of other markets logged declines of at least 0.5%.