US stocks fell on Wednesday morning as global bonds fell and investors awaited minutes from the Fed’s September meeting.
The Dow Jones Industrial Average dropped 0.9%, while the S&P 500 declined 0.5% and the tech-heavy Nasdaq Composite fell 0.7%. The Nasdaq and S&P 500 closed at record highs the day before.
The yield on 30-year Treasury bonds rose to 5.70%, the highest since 2002, ahead of the release later today of minutes from the Federal Reserve’s September policy meeting, when policymakers raised interest rates to combat inflation.
Sentiment had turned more buoyant in markets this week as bullish earnings estimates helped lift major indexes to all-time highs.
Factors that have weighed on markets this year could still pose impediments. Brent crude oil futures remain above $100 per barrel amid the latest Houthi attacks in the Middle East. Bond yields retreated on Tuesday but are still hovering near multidecade highs.
On Wednesday, the Fed’s meeting minutes will provide clues as to whether the central bank’s rate hike in September represented a one-off or whether the Fed’s thinking indicates more rate hikes ahead. As of Tuesday, traders priced in roughly 20% odds of a rate hike at the Fed’s October meeting next week.
Yahoo Finance
