Stock Market Today: Dow closes lower as 10-year Treasury yield flirts with 5%
Investing.com — The Dow closed lower Thursday as investors weighed a surge in the 10-year Treasury yield, mixed quarterly results and remarks from Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average fell 1% or 250 points, the Nasdaq slipped 1%, and the S&P 500 fell 0.9%.
Powell said the Fed is «proceeding carefully» on future rate hikes following a spike in Treasury yields that have helped tighten financial conditions «significantly,» but said continued economic growth could force the Fed to further tighten policy.
The Fed chief’s remarks arrived just on the heels of data showing the labor market still remains strong, pointing to underlying strength in the economy that pushed the 10-year Treasury yield to flirt with 5% for the first time since 2007.
Netflix (NASDAQ:NFLX) jumped more than 16% after reporting third-quarter results that topped analysts expectations as the streaming giant notched its best subscriber growth since the second of quarter of 2020.
The company also announced price hikes in the US, UK, and France that will underpin its average revenue per user, or ARPU, lift going into year-end, Deutsche Bank said in a note.
Tesla (NASDAQ:TSLA) plunged 9% after its Q3 results missed Wall Street expectations on the top and bottom lines as recent price cuts weighed on margin.
On the earnings call that proceeded the earnings, sentiment on the stock was further soured as a “much more cautious Musk which focused on a higher interest rates, FSD/AI investments, and highlighting the difficult path for Cybertruck production over the next 12 to 18 months,” Wedbush said.
Taiwan Semiconductor Manufacturing (NYSE:TSM) rose more than 3%, shrugging off a broader move lower in semiconductor stocks, after the
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