Jakarta, CNBC Indonesia – The United States (US) stock market opened lower on Wednesday (6/10/2021), amid renewed concerns about rising yields (yield) US government bonds.
The Dow Jones Industrial Average fell 250 points (-0.8%) at 08:30 local time (20:30 WIB) and within 15 minutes to 441.5 points (-1.29%) to 33,873.17. The S&P 500 index retreated 48.2 points (-1.11%) to 4,297.54. However, the Nasdaq dropped 141.4 points (-0.98%) to 14,292.39.
“October confirms its reputation as the most volatile month of the year. We expect the volatile market in October to remain in place for a while,” said Ryan Detrick, an analyst at LPL Financial as quoted by Reuters. CNBC International.
Shares of American Airlines and JetBlue were the heavyweights, dropping 4% each at the open following a downgrade from Goldman Sachs in response to rising aviation fuel prices and still low ticket sales.
Cyclical stocks benefiting from the economic recovery such as Boeing, General Electric and Ford also fell by 1%. Likewise, technology stocks such as Facebook, Amazon, Apple and Microsoft are compactly depressed by more than 1%.
The increase in the price of West Texas Intermediate (WTI) oil which approached the figure of US$ 80/barrel, which was accompanied by strengthening yields (yield) the 10-year bond-which is the benchmark for the US market-to 1.52% today, triggering a sell-off in technology stocks.
Meanwhile, ADP data as of September shared positive news in the form of an additional 568,000 job positions last month, which exceeded economists’ estimates in a Dow Jones poll of 425,000.
Investors are also monitoring progress on settling the US debt limit. Secretary of the Treasury Janet Yellen to CNBC International warned that the US could fall into recession if Congress failed to raise the debt limit before the October 18 deadline.
CNBC INDONESIA RESEARCH TEAM
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