Wall St falls as bond yields test multi-decade highs
SPY•U.S. stocks fell as the 10-year Treasury yield climbed to 5.278%, near its highest level since 2007, and the 30-year yield reached its highest since 2002. The Dow dropped 0.54%, the S&P 500 fell 0.21% and the Nasdaq lost 0.06%.
1. Yields weigh on stocks
U.S. stocks were under pressure as government bond yields resumed their climb. The 10-year Treasury yield rose to 5.278%, near its highest level since 2007, while the 30-year yield reached its highest since 2002. Nine of the 11 S&P 500 sectors traded lower, while the Philadelphia semiconductor index rose 1.8%.
2. Economic and company news
September consumer confidence fell to its lowest level in more than 12 years, and a separate reading showed job openings declined in August. Traders saw a 68% chance of another interest rate hike in October, and at least six Federal Reserve officials were scheduled to speak Tuesday. CarMax gained 6.1% after reporting higher second-quarter profit and revenue, while Fair Isaac fell 26.4% after the Federal Housing Finance Agency director said Fannie Mae and Freddie Mac would move to a single pricing grid.
