Stock Market Today: Dow falls as Nvidia weakness, jump in Treasury yields bite
Investing.com — The Dow closed lower Wednesday as Nvidia continued to weigh on tech for a second-straight day and rising Treasury yields continued put the squeeze on stocks.
The Dow Jones Industrial Average fell 0.98% or 332 points, the Nasdaq fell 1.6%, and the S&P 500 fell 1.4%.
Morgan Stanley (NYSE:MS) reported quarterly results that topped Wall Street estimates, but underperformance in its wealth management and investment banking division sent its shares more than 6% lower.
Revenue from the bank’s investment banking business fell 27%, while its wealth management unit reported a 5% rise in revenue.
New York Federal Reserve president John Williams said Wednesday that the Fed will likely keep rates higher for longer for “some time” to rein in inflation toward its 2% target.
The remarks come just a day ahead of Fed chairman Jerome Powell’s remarks at week the Economic Club of New York on Thursday at 12pm ET.
Many are watching whether Jerome Powell will endorse recent remarks from fellow Fed members suggesting that the recent jump in Treasury yields could be substitute for rate hikes.
Treasury yields continued to climb, with the yield on the 10-year Treasury topping 4.9% for the first time since 2007.
Another pause on rate hikes for November is nearly fully priced in, according to Investing’s Fed Rate Monitor Tool. The odds of a December rate hike, however, jumped to 40% this week from 26% last week.
NVIDIA Corporation (NASDAQ:NVDA) fell 4% after warning that the tighter U.S. curbs on exports of its A800 and H800 chips to China may impact its ability to complete development of products in a timely manner. The curbs could also weigh on its ability to “support existing customers of covered products, or supply customers of
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