Rise in interest rates spark panic on Wall Street

29 April, 2018, 13:24 | Author: Regina Lloyd
  • Rise in interest rates spark panic on Wall Street

(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%.

Recommended:

  • Liverpool reveal stance on Gerrard's Rangers job offer

    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 .

    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.
    Meek Mill to Be Released From Prison

    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".
  • Led House Panel Clears Trump, His Aides in Russia Probe

    Led House Panel Clears Trump, His Aides in Russia Probe

    Trump quickly claimed vindication Friday morning on Twitter , writing, "Just Out: House Intelligence Committee Report released". The meeting took place after Trump Jr. discovered that the attorney had political dirt on Hillary Clinton .
    Israel cancels plan to deport African asylum seekers

    Israel cancels plan to deport African asylum seekers

    Thousands are concentrated in poor neighborhoods in south Tel Aviv, an area that has become known as "Little Africa". On Tuesday, Netanyahu tweeted that he would prepare to reopen Israeli detention facilities for the migrants.
    Senate Judiciary Committee passes bill to protect Mueller from Trump

    Senate Judiciary Committee passes bill to protect Mueller from Trump

    Majority leader Mitch McConnell , R-Ky., has said the bill is "not necessary" and that he would not bring it up for a vote. Legislation to protect special counsel Robert Mueller from being fired advanced through a Senate committee on Thursday.
  • Darvish rebounds as Cubs beat Brewers 3-2

    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.
    President Bush moved out of intensive care, continuing to recover

    President Bush moved out of intensive care, continuing to recover

    Barbara Bush , George's wife of 73 years and the matriarch of the Bush political dynasty, died on April 17 . It had earlier announced that Bush had contracted an infection that spread to his blood.
    Financial Stock on the Move: Lloyds Banking Group plc (NYSE:LYG)

    Financial Stock on the Move: Lloyds Banking Group plc (NYSE:LYG)

    There are advantages to using a moving average in your trading, as well options on what type of moving average to use. For example, the stock performance on a yearly basis is estimated at, while in the last 365 days it has been -1.33%.
  • Almost  100 Sickened by E.Coli-Tainted Romaine Lettuce

    Almost 100 Sickened by E.Coli-Tainted Romaine Lettuce

    Infections have actually been connected to the E. coli O157: H7 stress and health problems have actually frequently been serious. Doctors say this strain of E. coli is especially unsafe because it produces a toxin that could lead to kidney complications.
    Liverpool-Roma stabbing incident: What we know so far

    Liverpool-Roma stabbing incident: What we know so far

    Meanwhile, Liverpool's manager, Juergen Klopp , refused to dwell on the two late goals they conceded in the win. The only surprise was Klopp's decision to take Salah out with a 5-0 lead in the 74th minute.
    Unbelievable Westbrook: 45 points to rescue Oklahoma

    Unbelievable Westbrook: 45 points to rescue Oklahoma

    Westbrook scored immediately at the start of the fourth to finally put the Thunder in front. Russell Westbrook exploded for 45 points, 15 rebounds and 7 assists to lead the Thunder.


Popular

'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.

Arsene Wenger Wants to Manage Another Big European Club
I am like a guy who plays Russian roulette every week and suddenly has no gun. "I knew that was not the case". All the recruitment has to change because they've not recruited well enough for me over the last few years.

If you're going to the World Cup, go to Manchester
They face hosts England at Cardiff, where the Tigers had defeated Australia and New Zealand. The top four teams from the group will then progress to the knockout stage.

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.

Apple iOS 11.3.1 Released: Here are the Key Features
The issue mostly existed in the manner Link Presentation handled URLs and it has been done away with by improved input validation. The bug wasn't revealed officially, but some affected users reported its existence weeks after the release of the update.

Joel Embiid Celebrates With Meek Mill, Kevin Hart After Sixers Advance
The Spurs seemed to come out with more drive and actual resilience in the wake of the death of Greg Popvitch's wife in Game 4. The Jazz used a 20-3 run spanning the end of the second quarter and the start of the third to break open the game.

Ford first-quarter earnings up slightly, company promises more savings
Automotive revenue rose to $39 billion, exceeding the average projection for $37.2 billion in a Bloomberg survey. Ford reported first quarter net income of $1.7 billion in 2018 and a 7 percent revenue increase from 2017.

Inter-Korean summit schedule revealed
The findings follow an announcement by President Kim Jong Un that North Korea would cease activity on its weapons testing programme.