Rising consumer prices, oil and Treasury yields send S&P 500, Nasdaq lower
SPY•The S&P 500 and Nasdaq fell at Wednesday’s open after hotter-than-expected inflation data and rising Treasury yields, while the Dow turned higher. The 10-year Treasury yield rose to about 5.30%.
1. Stocks diverge at open
The S&P 500 and Nasdaq opened lower Wednesday and were on track for their third consecutive daily losses, while the Dow turned higher within minutes. Hotter-than-expected inflation data prompted growing bets on Federal Reserve rate hikes and pushed Treasury yields higher; rising WTI crude prices added pressure.
2. Yields and earnings
The U.S. 10-year Treasury yield jumped to about 5.30%. Bank of America missed profit estimates due to trading weakness, while Morgan Stanley and BlackRock topped expectations. Financials were the weakest S&P sector, while healthcare led gainers.
