Rise in interest rates spark panic on Wall Street

29 April, 2018, 13:24 | Author: Regina Lloyd
  • Dow Jones falls nearly 425 points; Caterpillar reports earnings plateau

(BA), but the broader market finished (http://www.marketwatch.com/story/stock-selloff-set-to-continue-as-10-year-yield-blows-further-past-3-2018-04-25) the session little changed, as investors wrestled with climbing government bond yields.

BONDS: Investors may have also been anxious about rising interest rates, as they tend to slow down economic growth by making it more expensive for people and companies to borrow money.

The rise in Treasury yields reflected the durability of the USA economic expansion and stoked views the three-decade-old bull market in bonds is coming to an end.

Other industrial, technology and basic materials companies also took sharp losses. 3M said raw materials costs are rising, especially for materials derived from crude oil, whose price has been rising, and transportation and logistics expenses are rising as well. The blue-chip index Dow Jones Industrial Average fell by 423 points (-1.7%) to 24,024.13 points, wiping out an increase of 131 points from the beginning of the session.

On Wednesday, the USA stocks fell drastically adding up to the losses of the last session, as the investors fretted over interest rates reaching multiyear highs. The Nasdaq composite declined 68 points, or 1 percent, to 6,939.

Low interest rates have played an important role in the economic recovery of the last decade, and the yield on the 10-year note is a benchmark for many kinds of interest rates including mortgages.

Comcast rose 2.7 percent after the largest US cable company confirmed its $31 billion bid for Sky on the heels of its better-than-expected earnings report.

ENERGY: Benchmark U.S. crude oil shed 1.4 percent to $67.70 a barrel in NY. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February.

The aerospace company topped Wall Street's estimates in the first quarter and raised its forecasts for the year.

The Russell 2000 is down 10.84 points, or 0.7 percent.

Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12.

Another market favorite, Amazon, shed 3.6 percent to $1,462.70. Comcast rose 1.6 percent to $33.85 and Fox gained 1.1 percent to $36.42.

The Dow rose 59 points, or 0.4 percent, to 24,083.

Wholesale gasoline lost 1.4 percent to $2.09 a gallon. The Brent oil price fell by 0.96% to 73.99 United States dollars per barrel. The maker of Maytag and KitchenAid products rose 4.4 percent to $156.93. By the close, Hong Kong's Hang Seng lost 1%, South Korea's Kospi fell 0.6%, China's Shanghai Composite shed 0.4%, and Japan's Nikkei dipped 0.3%.



Liverpool reveal stance on Gerrard's Rangers job offer
Gerrard is still mulling over the Rangers job and Benitez has offered to be a sounding board if he wants to contact him. According to The Scottish Sun , Rangers have agreed a deal to sign Burnley midfielder Scott Arfield .

Darvish rebounds as Cubs beat Brewers 3-2
Tillman (1-4) struck out five and walked two on 98 pitches to get Baltimore its second win in 13 games. Bryant is hitting.319 with two homers, seven doubles, 11 RBIs, and 1.003 OPS in 19 games this season.

Russian lawyer who met with Trump campaign admits to being Kremlin informant
In that meeting, Veselnitskaya said she discussed the Russian adoption ban with Donald Trump Jr . "I have no relationship with Mr. Chaika, his representatives and his institutions other than those related to my professional functions as a lawyer".

Cowboys' Jerry Jones: Jason Witten hasn't made a 'final decision' on retirement
All-American tight end Tony Gonzalez is the only one to have more receptions and yards at the tight end position. The club released receiver Dez Bryant , the club leader with 73 TD grabs, in a cost-cutting move.

'Facebook is a morality-free zone': tech chief lambasted by MP
Schroepfer said: "I believe we are producing more extensive information for both the Electoral Commission and the Information Commissioner".

More protection for Brady - Patriots acquire OT Trent Brown from 49ers
His massive size has been a hindrance to pass rushers but doesn't mesh particularly well with the team's zone-rushing style. They expect him to take over at right tackle while Joe Staley continues to man the fort at left tackle.

Sweden FA boss confirms position on Ibrahimovic
Ex-Manchester United ace Ibrahimovic scored 62 goals in 116 caps for Sweden , before retiring after euro 2016. It read , "Zlatan Ibrahimovic has previously refused to play in the national team - and he has not changed".

Man claims Starbucks manager denied him bathroom use because he's black
Philadelphia police have released a recording of the call from the Starbucks employee that led to the arrest of two black men. Police were told the men had asked to use the store's toilets but were denied because they had not bought anything.

Prince William hints at the royal baby name
Of course, the Palace could have just waited five minutes for the happy family to exit the hospital and tell the world themselves. The words "It's a boy" flashed in lights around the top of London's BT Tower, which can be seen for miles around.

Meek Mill to Be Released From Prison
She defended herself, saying she had acted "impartially and without prejudice" in all proceedings since 2008. The state's highest court directed a judge who'd jailed him to let the rapper out on "unsecured bail".