Wall St Falls, Yields Rise on Hot Labour Cost Data

economictimes.indiatimes.com:

Federal Reserve's interest-rate decision and as stronger-than-expected labour costs hinted at persistent inflation. US labour costs increased in the first quarter amid a rise in wages and benefits, confirming the surge in inflation early in the year that will likely delay a much-anticipated interest rate cut later in 2024.

In midday trading, the benchmark 10-year yield rose 4.7 basis points (bps) to 4.659%. The yield on the 30-year Treasury bond was up 3.2 bps at 4.767%. On the short end of the curve, the U.S. two-year Treasury yield, which typically reflects interest rate expectations, rose to hit its highest since November at 5.03%. The yield was last up 3.9 bps to 5.01%.

At 2345 IST, the Dow Jones Industrial Average was down 372 points, or 0.97%, at 38,013, the S&P 500 was down 43 points, or 0.84%, at 5,073, and the Nasdaq Composite was down 170 points, or 1.06%, at 15,813.

Tesla dipped 5.2% following a 15% surge in the previous session after a report that CEO Elon Musk had dismissed two senior executives and plans to lay off hundreds more employees.

Ten of the 11 S&P 500 sectors were trading lower, with rate-sensitive sectors such as utilities and real estate among the worst hit. Energy led losses with a 1.4% fall.