Equities end slightly lower as bond yields hold near multi-decade highs
SPY•US stocks ended lower as Treasury yields stayed near multi-decade highs: the S&P 500 fell 0.14%, the Nasdaq lost 0.08% and the Dow dropped 0.26%. The 10-year yield reached 5.293%, and September consumer confidence fell to a nearly 12½-year low.
1. Stocks and yields
US stocks ended slightly lower Tuesday as investors weighed rising bond yields, comments from Federal Reserve officials and upcoming inflation and labor-market data. The 30-year Treasury yield reached 5.6206%, its highest since June 2002, while the 10-year yield rose to 5.293%, its highest since June 2007. Both eased from earlier highs, and the probability of at least a 25-basis-point Fed rate hike at the October meeting fell to 51.5% from nearly 70% earlier in the session.
2. Economic data and movers
Job openings fell by 256,000 to 7.079 million in August, below economists’ 7.225 million estimate. The Conference Board said consumer confidence plunged to a nearly 12½-year low in September. CarMax shares climbed after the company reported higher second-quarter profit and revenue, while Fair Isaac shares fell after the Federal Housing Finance Agency director said Fannie Mae and Freddie Mac would move to a single pricing grid.
