Wall Street turns red as benchmark Treasury yield touches 19-year high
SPY•Coming up
Thursday brings day two of the high-stakes—and potentially tense—Trump/Xi summit in Washington, at which the leaders of the world's two largest economies will likely discuss technology, trade and geopolitical tensions.
In economics, aside from the Labor Department's weekly jobless claims report, on Thursday the Commerce Department will release its new home sales data for August.
Economic data and sector moves
Additionally, S&P Global's "Flash" PMI report showed the US economy is going gangbusters this month, expanding at a much faster pace than analysts expected, and is therefore more likely to absorb whatever Warsh & Co throw at it.
That, in turn, sent the benchmark US Treasury yield to its highest level since July 2007.
On the sector level, energy provided a rare glimpse of green, as did the S&P Software & Services index, while travel/leisure, airlines and gold & silver miners were the clear underperformers, each sliding 3% or more.
Wall Street loses ground as yields spike
Wall Street lost ground on Wednesday as US Treasury yields spiked and crude prices resumed their seemingly endless ascent.
All three major US stock indexes ended red, with the tech-loaded Nasdaq falling the most, ending 1.1% lower after reaching record closing highs on Monday and Tuesday. Small caps had an even worse day, with the Russell 2000 ending the session down 1.8%.
Oil prices and inflation worries weigh on sentiment
Front-month WTI and Brent crude futures settled up 1.8% and 3.9%, respectively, after Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran would never surrender, and condemned Trump's "bullying mentality."
