Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account More political disorder could potentially trigger a downgrade.Īs stocks settle after the trading day, levels might change slightly. Moody’s, the only major credit rating firm to keep a perfect credit rating on the United States, has warned that a government shutdown would be “credit negative” for the United States. “The news out of the House today once again highlights the difficult political backdrop in addressing such issues,” said Michael Reinking, manager of NYSE research. House Republicans are voting on whether to oust Speaker Kevin McCarthy from his role because he worked with Democrats to avoid the shutdown. “Unless the report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst at OANDA.Īdding to the volatility is the fallout from a narrowly avoided federal government shutdown last weekend over the fiscal budget. Later this week, the Bureau of Labor Statistics also releases August employment figures. West Texas Intermediate crude futures, the US benchmark for oil, fell below $90 on Tuesday, cooling off from their climb in recent months as a series of output cuts announced by OPEC+ started to take hold on oil prices. Ting Shen/Bloomberg/Getty ImagesĬNN’s Fear & Greed Index fell to an “Extreme Fear” reading of 16, its lowest level since last October. Pedestrians near the US Treasury building in Washington, DC, US, on Friday, Dec. That’s up from July’s upwardly revised estimate of 8.92 million openings and above the consensus 8.8 million estimate among economists. Yields continued to rise on Tuesday, with their climb accelerating after fresh data from the Bureau of Labor Statistics showed that the number of US job openings unexpectedly soared to an estimated 9.61 million open jobs in August. Stocks tend to suffer when government bond yields are elevated, since it means investors can get high returns on less risky assets. Treasury yields have spiked and the US dollar has surged in the weeks since the Fed’s late-October meeting, continuing to chip away at the stock market’s gains from the spring. Stocks have marched higher for most of this year, as AI excitement took hold on Wall Street and powered tech stocks to stratospheric heights.īut that rally petered out in August, as strong economic data had investors worried that a resilient economy and piping hot labor market would lead the Federal Reserve to hold interest rates higher for longer to tamp down inflation. When Treasury yields go up, so do mortgage rates. Mortgage rates tend to track the yield on 10-year US Treasuries. While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them. Investors are starting to worry that the housing market could be the next domino to fall and potentially trigger a recession. The Fed signaled last month that it could introduce one more hike this year and keep rates elevated through next year. The Nasdaq Composite lost 1.9%, extending the late summer selloff. The benchmark S&P 500 declined 1.4% for its lowest close since May. The Dow fell 430 points, or 1.3%, notching its lowest close since June and turning lower for the year. Stocks fell sharply Tuesday afternoon, as US Treasury yields surged to their highest levels in over a decade, worrying investors that higher borrowing rates could further stall the housing market.
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