US Stock Market Today: S&P 500, Dow Jones Decline Amid Jump In Yields
Nvidia, Oracle and Tesla stocks were among the drags in early trade.
S&P 500, Dow Jones Industrial Average and Nasdaq Composite opened lower on Thursday, following a two-day decline, amid the jump in yields.
The 10-year Treasury yield rose to around 4.19%, which likely contributed to the selling of shares. The rise in yields came after data on jobless claims fell below estimate.
Minutes into the trade, the Dow Jones fell 129.24 points or 0.28%, S&P 500 declined 0.64%, and Nasdaq slipped 1%.
The Wall Street sentiment was weighed by other set of economic data as well, including the inflation-adjusted gross domestic product, which increased at a revised 3.8% annualised pace.
Initial claims for unemployment benefits fell sharply last week, easing concerns at the Federal Reserve and elsewhere about potential weakness in the labour market.
For the week ending Sept. 20, first-time filings came in at a seasonally adjusted 218,000, according to the US Labor Department. That marked a decline of 14,000 from the previous week’s revised level and was well below the Dow Jones consensus forecast of 235,000.
On Wednesday, S&P 500, Dow and Nasdaq had closed at their low with S&P 500 and Nasdaq falling 0.3% and Dow Jones fell 0.4%.
“Active investors will want to see an in-line or lower inflation result, keeping the Fed on pace for two more rate cuts in 2025,” Bret Kenwell at eToro told Bloomberg. “As much as investors want lower rates, a solid economy is more important.”
On Thursday, Johnson & Johnson, Apple Inc. and Intel Corp. were among the early gainers. Tesla Inc., Microsoft Corp., Amazon.com Inc. and Nvidia Corp. were among the drag, whereas once AI-hot play Oracle Corp. slumped nearly 5%.
As the US market opened, spot gold fell 0.2% to $3,729.73 an ounce. Crude oil prices fell, with the West Texas trading 1.2% higher at $64.19 per barrel.
The Bloomberg Dollar Index rose 0.3%, with the British Pound slipping 0.4% to $1.3388 and the Japanese yen slipping 0.2% to 149.22 per dollar.
Bitcoin, the largest-traded cryptocurrency fell 2.1% at $111,196.04.
