Stocks tumble as flight to safety drops 10-year yield to lowest since February

U.S. stock markets were under pressure Thursday as the spreading of COVID-19 variants sparked concerns over global growth. 

The Dow Jones Industrial Average fell 256 points, or 0.74%, while the S&P 500 and the Nasdaq Composite declined 0.85% and 0.72%, respectively. The selling tipped both the S&P 500 and the Nasdaq Composite off of Wednesday’s all-time highs. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35369.09 -74.73 -0.21%
SP500 S&P 500 4535.43 -1.52 -0.03%
I:COMP NASDAQ COMPOSITE INDEX 15363.515931 +32.34 +0.21%

The sharp selloff in the stock market steered investors into the bond market, pushing the 10-year yield down by 3.4 basis points to 1.287%, the lowest since Feb. 18. 

FORGET INFLATION – DEFLATION COULD REAR ITS UGLY HEAD SOON

In stocks, financials, which benefit from a steeper yield curve, were in the crosshairs. 

Carnival Corp. and Delta Airlines suffered amid concerns a rebound in COVID-19 cases could stunt demand for travel. 

Ticker Security Last Change Change %
CCL CARNIVAL CORP. 22.96 -1.06 -4.41%
DAL DELTA AIR LINES, INC. 40.25 -0.57 -1.40%

Dow component Boeing Co. was lower for a fourth straight session following reports that a unit of Russian airliner Aeroflot canceled an order for 20 Boeing 737 Max jets. 

Other industrials, including Caterpillar Inc. and Freeport-McMoRan Inc., were also weaker.  

Ticker Security Last Change Change %
BA THE BOEING CO. 218.17 -2.66 -1.20%
CAT CATERPILLAR, INC. 210.37 -1.41 -0.67%
FCX FREEPORT-MCMORAN, INC. 36.14 -0.13 -0.36%

Meanwhile, chipmakers Advanced Micro Devices Inc. and Nvidia Corp. struggled under growth concerns. 

Ticker Security Last Change Change %
AMD ADVANCED MICRO DEVICES, INC. 109.92 +0.72 +0.66%
NVDA NVIDIA CORP. 228.43 +4.47 +2.00%

Chinese tech stocks listed in the U.S. tumbled in early trading amid concerns Beijing will toughen measures on the sector. Didi Global Inc. shares have plunged 27% since Chinese regulators on July 1 announced an investigation into national data security risks at the company. 

Ticker Security Last Change Change %
DIDI DIDI GLOBAL INC 9.02 +0.21 +2.38%
BABA ALIBABA GROUP HOLDING LTD. 170.30 -1.70 -0.99%
BIDU BAIDU, INC. 162.98 +0.61 +0.38%

In commodities, West Texas Intermediate crude oil climbed 74 cents to $72.94 a barrel while gold slipped $1.90 to $1,799.60 an ounce. 

Overseas markets were sharply lower.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

In Europe, France’s CAC 40 and Germany’s DAX 30 declined 2.01% and 1.73%, respectively, after the European Central Bank tweaked its inflation target to 2% “over the medium term.” The central bank will allow for inflation to run above the level for a brief time. 

Elsewhere in the region, Britain’s FTSE 100 lost 1.68%.

In Asia, Hong Kong’s Hang Seng index fell 2.89%, Japan’s Nikkei 225 slid 0.88% and China’s Shanghai Composite slipped 0.79%. 

View more information: https://www.foxbusiness.com/markets/stocks-covid-bonds-boeing-industrials-china-oil-gold-europe-asia

See more articles in category: Finance
READ:  It's Going To Be A Wild Day For XIV, The Credit Suisse Volatility ETN

Leave a Reply

Check Also
Close
Back to top button