Stock Market Today: Dow Futures Slip
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Markets today face pressure from rising Treasury yields and deficit concerns as traders head into the long weekend with caution.
U.S. stocks saw a broad selloff Wednesday afternoon after the yield on the 10-year Treasury crossed above 4.5% rattling investors. The benchmark is a barometer for everything from mortgages to personal loans and now signaling higher borrowing costs.
The yield on both 10 and 30-year government bonds rose on Monday after another credit ratings agency downgraded the US on Friday.
The recent jump in Japanese government bond yields is making the selloff in Treasurys look tame by comparison, said Renaissance Macro's Jeff DeGraaf in a report shared with MarketWatch on Wednesday. D
Stocks and bonds dropped on Wednesday after a Treasury auction was met with weak demand. The 10- and the 30-year bond yields spiked higher after jumping earlier in the day on deficit fears.
The Dow closed lower by 817 points, or 1.91%. The broader S&P 500 slid 1.61% and the tech-heavy Nasdaq Composite fell 1.41%. The three major indexes each posted their worst day in one month.