Stock market today: Wall Street is mixed as the pressure keeps mounting from the bond market
A sluggish day for stocks is keeping September on track to be the worst month of the year for Wall Street
NEW YORK — A sluggish day for stocks on Monday is keeping September on track to be the worst month of the year for Wall Street.
The S&P 500 was 0.1% lower in early trading, coming off its worst week in six months. The Dow Jones Industrial Average was down 73 points, or 0.2%, at 33,890, as of 9:53 a.m. Eastern time, and the Nasdaq composite was virtually unchanged.
Stocks have struggled recently as the realization sinks in that the Federal Reserve will likely keep interest rates high well into next year. The Fed wants to ensure high inflation gets back down to its target, and it said last week it will likely cut interest rates in 2024 by less than traders expected. Its main interest rate is already at its highest level since 2001.
A growing understanding that rates will stay higher for longer has pushed yields in the bond market up to their highest levels in more than a decade. That in turn makes investors less willing to pay high prices for all kinds of investments, particularly those seen as the most expensive or making their owners wait the longest for big future growth.
The yield on the 10-year Treasury rose to 4.50% from 4.44% late Friday and is near its highest level since 2007. That’s up sharply from about 3.50% in May and from 0.50% about three years ago.
“Stocks digest gradual, growth driven increases in interest rates far better than rapid increases driven by other factors such as inflation or Fed policy,” Goldman Sachs strategists led by David Kostin wrote in a report.
Higher yields are at the head of a long line of concerns weighing on Wall Street. Economies around the world are looking shaky, oil prices
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