Sp 500 And Dow Jones Show Weakness

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Sp 500 And Dow Jones Show Weakness

S&Amp;Amp; Amp; Amp; Amp; P 500 And Dow Jones Show Weakness As Yields Turn Higher

Tuesday's session sent the Dow Jones and the S& P 500 lower as the t-yields surged ahead of the inflation data. In addition, investors are also cautious about taking any positions in stocks as the rate cuts are still only a rumour rather than a reality.

The rumours of early rate cuts have decreased; only 65.7% of economists now believe in a rate cut during March. A few weeks ago, March's rate cut probability was 79%.

10y Bond Yields Hit 4.05%

Although this is bad for the US stock indices, the bond yields surged higher and were last seen around the 4% level. In addition, the 10-year bond yields moved towards 4.01% and reached a critical level near 4.05%.

As the week ahead is packed with important data releases, investors are now looking forward to a further increase in the bond yields. In addition, the earnings season of the US stocks will also start on Friday, and it will include big names like JPMorgan.

Tim Grhiskey, who works at Ingalls & Synder, said that the talks of rate cuts are speculations and nothing more. After all, the Fed will have the final say in this matter & and we have yet to get a confirmation from them.

That's why he added that the earnings result will dictate the next move in the Dow and the S& P 500 index. This also highlights that the market is trying to adjust itself ahead of time.

DJIA lost 157 points, equivalent to 0.42%, while the S& P 500 lost only 7 points. After the minor decline, the NASDAQ was trading near 14857 while the DJIA was near 37525.

Out of the 11 sectors from the S & amp; P 500 index, all closed in red, the energy sector was the top loser with a change of -1.63%.

In the future, any data that increases the chances of rate cuts will benefit US stocks immensely as it will lower the borrowing costs for US firms.

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