U.S. stocks fell at midday on September 1 as a global bond sell-off pushed yields to multi-decade highs and geopolitical tensions weighed on sentiment. The S&P 500, Dow Jones, and Nasdaq all traded lower, while gold slipped and Treasury yields climbed. Apple shares rose on a CEO transition, while Dell Technologies and other names moved on earnings and analyst calls.
The Nasdaq Composite fell 0.69% to 26,190 at midday on September 1 as a global bond sell-off intensified. The S&P 500 slipped 0.42% to 7,654. The Dow Jones Industrial Average dropped 0.42% to 52,964, with mounting geopolitical tensions weighing on sentiment.
Global bond sell-off drives the pullback
The declines tracked a broader sell-off in government bonds. Bloomberg reports that U.S. 30-year Treasury yields have stayed this high for this long for the first time since 2006, reflecting concerns about rising oil prices, inflation, and government debt. Yields also rose elsewhere, with Japan's 10-year bond briefly touching 3% for the first time in 30 years.
Gold fell 1.62% to $4,409.10. The 10-year Treasury yield rose to 4.77%. Communication and consumer defensive stocks led sector gainers, while technology and industrials underperformed.
The S&P 500 traded in a day's range of 7,627.87 to 7,663.63. That kept the index within its 52-week range of 6,316.91 to 7,816.70.
Rate hike bets pressure tech
The increasing likelihood of a Federal rate hike this month also pressured equities, particularly the tech-heavy Nasdaq. Higher rates raise borrowing costs, which can reduce demand and weigh on risk appetite.
Apple's leadership change lifts shares, Dell slips
Apple shares rose after John Ternus succeeded Tim Cook as CEO. Dell Technologies slipped ahead of its earnings release after the close. Duolingo and Robinhood Markets both gained following analyst upgrades.
Source: The Motley Fool
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