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A rally in the 10-year Treasury note, driving yields lower, Tuesday is implying that investors are picking up long-dated bonds, perceived as havens, in favor of stocks. The 10-year Treasury yield hit a nadir around 2.79% during Tuesday's action, representing the lowest closing yield since Feb. 6, according to WSJ Market Data Group (based on 3 p.m. ET closes). Bond prices rise as yields fall. Bond buying comes even as the market has been digesting some $300 billion in issuance slated for this holiday-shortened week for the fixed-income market, with Good Friday marking a holiday for the market. More issuance should drive yields higher, in theory. Meanwhile, the equity benchmarks unraveled, notably the Nasdaq Composite Index ended the day off 2.9%, cutting deeply into the technology-laden index's 3.3% return on Monday. The S&P 500 index closed down 1.7% at 2,612, while the Dow Jones Industrial Average , made up of 30 components, ended down 1.4%, led by sharp slumps in shares of Apple Inc. and Microsoft Inc. . Much of Monday's rise was attributed to a lessening of worries around trade conflicts between the U.S. and China, but Tuesday's trade suggests that investors are more eager to buy long-dated bond than make a definitive wager on another blockbuster day for technology shares and the broader stock market, considered risky, after the Dow's 670-point surge a day earlier.
U.S. stocks closed sharply lower on Tuesday, ending a volatility session near the lows of the day as technology and financial stocks saw particular weakness. The Dow Jones Industrial Average sank 344 points, or 1.4%, to 23,859. The S&P 500 sank 46 points, or 1.7%, to 2,613. The Nasdaq Composite Index shed 212 points to 7,009, a decline of 2.9%. Tuesday represented the biggest one-day percentage decline for both the Dow and the Nasdaq since Feb. 8, but only the biggest for the S&P since Friday. The day's losses were widespread, with seven of the 11 primary S&P 500 sectors down on the day, though tech and financials were by far the biggest losers. Tech shares fell 3.4% in their biggest one-day decline in about six weeks, while financials shed 1.9%. Recent trading has been pronounced to the downside; major indexes have dropped in four of the past five sessions, although the only positive day -- Monday -- was the best day for the indexes since August 2015. Among the most notable decliners on Tuesday, Microsoft Corp. fell 4.6% while Apple Inc. was down 2.6%. On the upside, General Electric Co. gained 4.3%, rebounding off its lowest level since 2009.
Nasdaq closes down 2.9%; S&P 500 finishes off 1.7%
Dow ends more than 340 points lower, erases nearly half of Monday's surge as tech stumbles
The technology sector tumbled on Tuesday, dropping as the biggest decliner among S&P 500 sectors and leading the overall market lower. The sector sank 3.5%, dropping in what was set to be its biggest one-day decline since Feb. 8. While the group is one of only two industries to be positive for 2018 -- it is up 1.8% on the year, behind only the 2.4% gain of consumer-discretionary stocks -- it has struggled of late. The sector has dropped in eight of the past 11 sessions, and two of those positive sessions were gains of less than 0.1%. Thus far this month, it is down 5.3%, the second-worst performer behind financials. Among the biggest drags in the tech sector, Apple Inc. fell 2.9% while Microsoft Corp. was off 4.6%. Both are coming off sharp rallies in the previous session, including Microsoft's best one-day pop since 2015. Semiconductor stocks also weighed on the group, with Nvidia Corp. off 9.5% and Advanced Micro Devices down 5.1%.
The Dow Jones Industrial Average was off more than 400 points in late-Tuesday afternoon trade, as shares of Microsoft Corp. and Apple Inc. , among the leaders of Monday's surge, came under heavy selling pressure. Along with shares of Goldman Sachs Group Inc. , those Dow components were exacting a roughly 110-point toll on the price-weighted blue-chip average. The technology sector was being buffeted the most, with the exchange-traded Technology Select Sector SPDR ETF trading down 2.4% on the day. The technology-laden Nasdaq Composite Index was off 3.4%. Most recently, the Dow was down about 444 points, or 1.7%, at 23,784, while the S&P 500 index was 2.1% lower at 2,602.
U.S. stocks fell sharply on Tuesday, extending their losses throughout the session as technology and financial shares led the market lower. The Dow Jones Industrial Average fell 1.7% while the S&P 500 was off 2.1% and the Nasdaq Composite Index shed 3.4% in its biggest one-day drop since early February. The day's losses were led by the tech sector, which fell 3.6%, and by financials, off 2.1%. The session was the latest example of heavy volatility on Wall Street; Monday's session represented the biggest one-day percentage gain for the major indexes since August 2015, and the indexes are coming off their worst week in about two years. The day's losses were broad based, with only four of the 11 primary S&P 500 sectors in positive territory. The gains were led by defensive sectors, with utility stocks up 1.7% and telecommunications up 0.8%.
U.S. stocks extend losses; S&P 500 down 2%, Nasdaq off 3%
Whereas nothing seemed to faze the market in 2017, everything seems to be faze it in 2018.
A stock market selloff deepened on Monday after, led by high-flying technology stocks.
Major stateside stock benchmarks are pacing for a better annual performance than much of the rest of the world, despite a volatile few weeks.
It's quite likely the new chair will see more market volatility during his term than did his predecessor. Janet Yellen's time at the helm was marked by mostly serene markets.
Money is flowing back into stocks, a sign that investors believe the market will keep climbing after the recent selloff.
Stop trying to make sense of the stock market, Jason Zweig says.
Here is a selection of factoids about the market's big decline on Monday.
The Dow Jones Industrial Average briefly fell more than 5% from its record high on Monday morning, a pullback that has historically served as an entry-point for bargain-hunting investors.
The stock market's long stretch of calm was interrupted this week.
President Donald Trump on Friday suggested that his election loss would have sparked a plunge in the stock market that's only ever happened eight times.
The year is just 15 trading sessions old and already the stock market has put in almost a full year's worth of gains.
Barring a massive shock before the closing bell on Monday, the S&P 500 will have had 395 trading days without a decline of 5% or more from a record high
Investors are pouring into the stock market as major indexes extend their monstrous rise.
The Nasdaq Composite Index closed at an inflation-adjusted record for the first time in nearly two decades, passing one of the few elusive milestones during this long bull market.
Boeing Co. isn't the biggest firm in the Dow Jones Industrial Average, a blue chip index that also includes the largest U.S.-listed company by market value, Apple Inc.
The stock market had a blowout start to the year. In just four days, the S&P 500 rose 2.6%, its best week since the end of 2016. That's a good omen for the rest of 2018.
The Dow Jones Industrial Average can thank Boeing Co. for its record-breaking run.
No company is more tied to the Dow Jones Industrial Average than General Electric Co. But the Boston-based conglomerate wasn't much help in the blue-chip index's run to its latest milestone.
After a year in which the S&P 500 rose 19%, Wall Street expectations are for a more modest rise in 2018.
Just because stocks had a banner year in 2017 doesn't mean they have to have a bad year in 2018.
When stocks sell-off, a whole bunch of new financial terms start popping up that you may not be familiar with. Here's our cheat sheet to help you out.
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GMO Commentary - ESG: Improving Your Risk-Adjusted Returns in Emerging Markets
Key U.S. | Last | Chg | Chg % |
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Dow Jones Industrial Average | |||
NASDAQ Composite Index | |||
S&P 500 Index | |||
Russell 2000 Index | |||
Other U.S. | Last | Chg | Chg % |
Dow Jones Transportation Average | |||
Dow Jones Utility Average Index | |||
Dow Jones U.S. Total Stock Market Index | |||
NASDAQ 100 Index (NASDAQ Calculation) | |||
S&P 400 Mid Cap Index | |||
NYSE Composite Index | |||
Barron's 400 Index | |||
CBOE Volatility Index | |||
Global | Last | Chg | Chg % |
Global Dow Realtime USD | |||
Asia/Pacific | Last | Chg | Chg % |
The Asia Dow Index USD | |||
S&P/ASX 200 Benchmark Index | |||
Shanghai Composite Index | |||
Hang Seng Index | |||
S&P BSE Sensex Index | |||
NIKKEI 225 Index | |||
FTSE Straits Times Index | |||
Europe | Last | Chg | Chg % |
STOXX Europe 50 Index EUR | |||
STOXX Europe 600 Index EUR | |||
CAC 40 Index | |||
DAX | |||
IBEX 35 Index | |||
FTSE 100 Index GBP | |||
Americas | Last | Chg | Chg % |
BOVESPA Index | |||
S&P/TSX Composite Index | |||
IPC Indice de Precios Y Cotizaciones |
Company | Last | Chg | Chg % |
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General Electric Co. | |||
Procter & Gamble Co. | |||
Verizon Communications Inc. | |||
Coca-Cola Co. | |||
Nike Inc. Cl B | |||
Pfizer Inc. | |||
Johnson & Johnson | |||
McDonald's Corp. | |||
Exxon Mobil Corp. | |||
UnitedHealth Group Inc. | |||
Merck & Co. Inc. | |||
Chevron Corp. | |||
International Business Machines Corp. | |||
Home Depot Inc. | |||
Travelers Cos. Inc. | |||
United Technologies Corp. | |||
Walt Disney Co. | |||
DowDuPont Inc. | |||
American Express Co. | |||
Caterpillar Inc. | |||
Walmart Inc. | |||
JPMorgan Chase & Co. | |||
3M Co. | |||
Boeing Co. | |||
Intel Corp. | |||
Apple Inc. | |||
VISA Inc. Cl A | |||
Goldman Sachs Group Inc. | |||
Cisco Systems Inc. | |||
Microsoft Corp. |