Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 5, 2020.
Andrew Kelly/Reuters
US stocks snapped a two-day win streak on Wednesday despite solid corporate earnings reports.The decline came as bond yields surged, with the 10-year US Treasury yield jumping to its highest level since 2007.Third-quarter corporate earnings from Netflix, United Airlines, and Intuitive Surgical beat analyst estimates.
US stocks fell to snap a two-day win streak on Wednesday as rising bond yields outweighed solid third-quarter earnings results.
Bond yields surged to a new cycle high, with the 10-year US Treasury yield hitting a daily high of 4.13%, representing its highest level since 2007. Fed President Neel Kashkari said a strong jobs market means the economy likely isn’t in a recession yet, and that a Fed pause in rate hikes could arrive next year.
“My best guess right now is yes, do I think inflation is going to level out over the next few months, the services, the core inflation, and then that would position us some time next year to potentially pause,” Kashkari said at a virtual event on Wednesday.
Meanwhile, inflation overseas is not abating based on data from the UK. The country saw inflation clock in at 10.1% in September, matching the 40-year high seen in July. The British pound fell nearly 1% against the US dollar to 1.123 following the inflation data.
Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:
S&P 500: 3,695.47, down 0.66% Dow Jones Industrial Average: 30,425.26, down 0.32% (98.54 points)Nasdaq Composite: 10,680.51, down 0.85%
Here’s what else happened today:
Tesla reports third-quarter earnings results after the close today. Wedbush analyst Dan Ives said the company needs to focus more on execution and less on long-term projects like its Optimus robot.Netflix soared 14% after its third-quarter earnings beat analyst estimates. The company returned to growth during the quarter, having added 2.4 million subscribers after shedding 1.2 million subscribers in the first half of the year.Other companies that reported better-than-expected third-quarter results included United Airlines, Intuitive Surgical, and ASML Holding. Amazon founder Jeff Bezos warned that the US economy could slump into a recession in the coming months, and that people should prepare for a likely downturn.Seven liquefied natural gas ships are currently lingering in the Bay of Cadiz located in the Southwestern Spain, and it highlights the ongoing complication of Europe’s natural gas crisis.
In commodities, bonds and crypto:
West Texas Intermediate crude oil rose 2.67% to $84.26 per barrel. Brent crude, oil’s international benchmark, jumped 2.25% to $92.06.Gold fell 1.32% to $1,633.90 per ounce.The yield on the 10-year Treasury jumped 11 basis points to 4.13%.Bitcoin fell 0.45% to $19,199, while ether fell 0.77% to $1,295.