NEW YORK (awp international) – Sustained rising bond yields spoiled sentiment among US stock investors on Tuesday. The yield on ten-year government bonds rose to its highest level since mid-June. Interest-sensitive technology stocks suffered as a result. In contrast, oil stocks benefited from a further rise in oil prices.
The Dow Jones Industrial was recently listed 1.05 percent lower at 34 503.74 points. The broader S&P 500 fell 1.54 percent to 4,374.51 points. The technology-heavy Nasdaq 100 lost 2.30 percent to 14 855.83 points.
The rise in interest rates in the USA comes from rising inflation expectations and the planned tightening of monetary policy by the US Federal Reserve. On the bond market, in addition to the rally on the energy market, lower bond purchases by the central banks (tapering) are already being priced in, according to Commerzbank. When bond futures fall, this ensures yields rise – in the USA at their highest level for months.
New economic data reflect one reason for the growing skepticism about monetary policy: the sustained and accelerated rise in house prices. In the US, house prices rose nearly 20 percent in July. In addition, US consumer sentiment clouded over unexpectedly in September. Consumer confidence fell by 5.9 points on the previous month to 109.3 points, the lowest level since February. It is also the third consecutive loss.
Oil stocks remained in demand thanks to the continued rise in prices for the “black gold”. North Sea Brent oil cost more than $ 80 for the first time in about three years, while US crude was trading above the $ 76 mark. Oil prices will continue to be driven by strong demand and scarce supply.
As on the previous day, oil stocks were among the most sought-after stocks among the individual stocks. Chevron’s paper at the top of the Dow rose by around 1.2 percent. The shares of Exxon Mobil and ConocoPhillips each gained around 1.7 percent./edh/he
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