Wall Street dips as rising Treasury yields outweigh software gains
SPY•The Dow fell 0.30%, the S&P 500 lost 0.17% and the Nasdaq slipped 0.18% as rising Treasury yields pressured stocks, despite software gains. The 10-year Treasury yield touched 5.3445%, its highest since April 2002.
1. Yields pressure stocks
The S&P 500 fell to a two-week low as a global bond selloff pushed Treasury yields to multi-decade highs, overshadowing a rally in software shares. Manufacturing input prices rose, stoking inflation concerns, while higher oil prices added to worries about inflation.
2. Market moves
At 12:11 p.m., the Dow was down 0.30%, the S&P 500 was down 0.17% and the Nasdaq was down 0.18%. The 10-year Treasury yield touched 5.3445%, its highest since April 2002. Rate-sensitive housing and bank stocks fell, and the VIX rose to a two-week high of 17.07.
3. Software shares gain
Accenture shares surged 18% after the company forecast full-year revenue growth above estimates, while Cognizant rose 6.4%. Constellation Energy gained 2% after signing a 20-year power purchase agreement with Amazon. Micron shares slipped about 1.7% despite a better-than-expected revenue forecast and $32 billion in customer commitments under supply agreements.
