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Stock market drops 411 points due to interest rate changes ahead of economic data release

Market Update: U.S. Stocks Fall, Treasury Yields Rise amid Weak Demand for Bonds

U.S. Stocks Fall as Treasury Yields Continue to Rise

Stock prices fell on Wednesday ahead of new economic data on growth and inflation, with the Dow Jones Industrial Average dropping more than 300 points. The bond market sell-off continued for a second day, with the 10-year Treasury bond rising seven basis points to 4.61%.

An auction of $44 billion worth of seven-year government bonds was met with lukewarm demand, marking the third sale of U.S. Treasury bonds this week. Reports indicated that domestic demand was weaker than average, fueling fears of oversupply amid forecasts of longer yields.

Investors are closely watching key data points, including the revision of GDP for the first quarter and the release of the Federal Reserve’s preferred inflation measure. Economists expect the personal consumption expenditure index to show a 2.7% increase in price levels, but any surprises could have a significant impact on the stock and broader market.

The Nasdaq Composite fell further from record highs reached on Tuesday, with the tech-heavy index being supported by Nvidia, which rose almost 1% on the session.

In commodities, bonds, and crypto, West Texas Intermediate crude fell 1% to $79.85 a barrel, while Brent crude dropped 0.9% to $83.41 per barrel. Gold prices fell 0.8% to $2,336.20 an ounce, and Bitcoin saw a 1.6% decline to $67,286.78.

The market remains volatile as investors await further economic data and navigate the impact of rising Treasury yields on stock prices.


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