Stock Market Today: Dow closes lower as tech treasury yields rise

Stock Market Today: Dow closes lower as tech treasury yields rise

Written by Yassin Ibrahim – The Dow closed lower on Friday, pulled down by a wreck in technology after a jump in Treasury yields after data indicated growing expectations of higher inflation for a longer period, fueling investor fears about a Federal Reserve interest rate hike.

It fell 1.3% or 403 points, fell 2.3%, and fell 3%.

The University of Michigan showed that the average expected rate rose to 5.1%, up from 4.7% in September.

The rise in inflation expectations, a measure closely watched by the Federal Reserve, comes just a day after data showed inflation pressures worse than feared.

“[W]“Look at the drivers of lower inflation on the horizon, most notably from the reversal of auto prices and the decline in medical services,” Morgan Stanley said. “The risks are skewed towards more Fed tightening this year,” he added.

Treasury yields are up, with a 4% rise, as odds of a 0.75% Fed rate hike for November are now.

The rate hike has significantly affected the growth segments of the market, including the discretionary shares of consumers.

Apple Inc (NASDAQ :), down 3%, led the decline in big tech, with Microsoft Corporation (NASDAQ :), Alphabet (NASDAQ 🙂 and Meta Platforms (NASDAQ :)) down more than 2%.

Meanwhile, the major banks on Wall Street are starting their quarterly earnings season in earnest, with quarterly results often better than expected.

JPMorgan Chase & Co (NYSE:NYSE) stock rose more than 2% after announcing a better-than-expected report, as higher interest rates boosted net interest income to offset weakness in investment banking earnings.

(NYSE:) and (NYSE:) also posted better-than-expected quarterly results, but Morgan Stanley (NYSE: 🙂 bucked the trend with poor performance in its investment banking business.

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Tesla (NASDAQ:) fell more than 7% lowering consumer discretionary shares afterwards Wells Fargo He lowered his target price for the stock to $230 from $280 a share, citing concerns about the impact of higher interest rates.

The price cut comes just a week before the electric car maker’s third-quarter results scheduled for October 19.

In deal news, Albertsons (NYSE:) is down more than 8% on reports that Kroger (NYSE:) has agreed to buy Safeway’s owner in a deal worth $24.6 billion, or $34.10 a share.

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