On Friday, stocks fell as the 10-year Treasury yield increased which raised more general worries on the status of the economy.

The Nasdaq Composite fell 0.8% while the S&P 500 declined 0.6% and was headed for its first losing week in three. American Express led the Dow Jones Industrial Average down 118 points, or 0.4% after a conflicting earnings announcement.

On Thursday, the yield on the benchmark 10-year Treasury bond above 5% for the first time in 16 years. This development might have a knock-on effect on the economy, leading to rate increases on credit cards, auto loans, mortgages, and other loans. In addition, it presents investors with a compelling substitute for equities.

“The stock market is watching the bond market and doesn’t like what it sees,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “Yields are rising, even with the relatively good news about inflation. This is the primary reason the stock market has been weak.”

Higher rates sparked concerns about the sector’s exposure to depreciating Treasury securities, which led to the collapse of regional banks. Following an unsatisfactory earnings announcement, Regions Financial fell more than 11%, leading the slide. Almost 3% was lost by the SPDR S&P Regional Banking ETF (KRE).

Shares of American Express fell 3.5%. Although revenue was about in line with projections, the company’s earnings per share exceeded forecasts. Meanwhile, non-interest revenue fell short of the StreetAccount average estimate.

Stocks in the solar industry also saw significant declines. The action was taken after SolarEdge’s stock fell 30% following the company’s reduction in its third-quarter revenue guidance.

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