Stock market today: Wall Street wilts as yields rise ahead of speech by Federal Reserve’s Powell
Wall Street slumped to its worst day in three weeks, despite a blowout profit report from Nvidia
NEW YORK — Wall Street slumped Thursday, despite a blowout profit report from Nvidia, following some mixed reports on the U.S. economy.
The S&P 500 dropped 1.3% for its worst loss in three weeks. It nearly wiped out its gain for the week, which had been a bright spot in what's been a rough August.
The Dow Jones Industrial Average dropped 373 points, or 1.1%, and the Nasdaq composite tumbled 1.9%.
Stocks sank as Treasury yields stabilized following their tumble a day earlier. High yields in the bond market have been upping the pressure because they make investors less willing to pay high prices for stocks and other risky investments. They may be set to go even higher, depending on what the head of the Federal Reserve says in a speech scheduled for Friday.
The yield on the 10-year Treasury rose to 4.23% from 4.20% late Wednesday. It fell there from 4.33% a day before, close to its highest level since 2007.
Yields found some traction following a couple mixed reports on the U.S. economy. One showed that fewer U.S. workers applied for unemployment benefits last week. It’s the latest sign that the job market remains remarkably resilient despite high interest rates.
Another report said orders for long-lasting manufactured goods slumped by more last month than economists expected. That could be a signal that conditions are worsening for the struggling manufacturing industry, but orders actually rose more than expected for the month after ignoring airplanes and other transportation equipment.
For now, weaker-than-expected reports on the economy may counterintuitively be more welcome in financial markets. The economy has managed to
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