Home » Business » Bond Reversal Fails to Halt Stock Market Decline as Yields Retreat

Bond Reversal Fails to Halt Stock Market Decline as Yields Retreat

Yields on longer-dated Treasurys retreated on Friday, reversing the previous day’s decade-plus highs. However, despite the bond reversal, U.S. and global stock indexes continued to fall, extending the selloff that has plagued markets this month. The surge in borrowing costs has put pressure on stocks and led many companies to lower their future earnings expectations.

In recent trading, government bonds rallied as the 10-year U.S. Treasury yield fell back under 4.3%, after reaching its highest level since November 2007. The yield on longer-dated U.S. Treasurys also ticked lower.

Stock indexes mostly retreated, with the Nasdaq leading the way down by more than 0.5%. The S&P 500 was down around 0.2%, while the Dow industrials saw marginal gains.

One standout performer in the S&P 500 was Ross Stores, the discount retailer, which saw its stock rise more than 5% after reporting better-than-expected earnings and raising its financial outlook. On the other hand, Keysight Technologies and Deere & Co. were the biggest losers in the S&P 500 after disappointing quarterly results.

Bitcoin also experienced a decline, with selling pressure increasing after a period of calm trading. The digital currency was recently trading at around $26,140.

In the commodities market, agricultural commodities saw gains, with wheat futures in Chicago rising by more than 3% and corn and soybean futures gaining more than 1%.

Oil prices ticked higher, with benchmark U.S. barrels rising back above $80.

Overseas stocks also declined, with Hong Kong’s Hang Seng Index losing more than 2% and entering a new bear market. Stocks in Germany, the U.K., and France also saw declines.

Looking ahead, earnings from Palo Alto Networks are due after the close.

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What are the anticipated earnings for Palo Alto Networks in the upcoming report

Yields on longer-dated Treasury bonds retreated on Friday, reversing the previous day’s highs. Despite this bond reversal, global stock indexes continued to fall, extending the ongoing market selloff. The surge in borrowing costs has had a negative impact on stocks and has led many companies to lower their future earnings expectations.

In recent trading, government bonds rallied as the 10-year US Treasury yield fell back under 4.3%, after reaching its highest level since November 2007. The yield on longer-dated US Treasuries also decreased.

Stock indexes mostly declined, with the Nasdaq leading the way with a decrease of over 0.5%. The S&P 500 was down around 0.2%, while the Dow industrials saw minimal gains.

One notable performer in the S&P 500 was Ross Stores, a discount retailer, whose stock rose over 5% after reporting better-than-expected earnings and raising its financial outlook. On the other hand, Keysight Technologies and Deere & Co. were the biggest losers in the S&P 500 after disappointing quarterly results.

Bitcoin also experienced a decline, with selling pressure increasing after a period of calm trading. The digital currency was recently trading at around $26,140.

In the commodities market, agricultural commodities saw gains, with wheat futures in Chicago rising by over 3% and corn and soybean futures gaining over 1%.

Oil prices increased slightly, with benchmark US barrels rising back above $80.

Overseas stocks also declined, with Hong Kong’s Hang Seng Index losing over 2% and entering a new bear market. Stocks in Germany, the UK, and France also saw declines.

Looking ahead, earnings from Palo Alto Networks are due after the close.

Stay informed about the markets with our free morning and evening newsletters, delivered every weekday.

1 thought on “Bond Reversal Fails to Halt Stock Market Decline as Yields Retreat”

  1. “Looks like the bond market’s attempt to reverse the stock market decline was short-lived. Hoping for a more stable and positive trend soon!”

    Reply

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