Boeing was down 3 percent and Home Depot fell 3.2 percent, weighing the most on the Dow, while JPMorgan was among the top drags on the S&P. The since February 2016.
Managers have cautioned the sell-off in both bond and equity markets has further to run, pointing to the impact of the withdrawal of central bank stimulus and even a potential stagflationary environment developing.
On Thursday, world stock markets remained unstable as US bond yields rose near four-year highs following congressional leaders agreeing on a two-year budget deal that will raise government spending by almost $300 billion. The index is down just below 30 on Thursday, but that is more than twice the levels seen in the past few months.
"I don't think markets can recover immediately (from the shock), there needs to be a stabilization phase". It's been pretty ugly. Non-farm payrolls data released by US Labor Department data on Friday showed that it rose to 200,000 in Jan, more than the average estimate of economists.
Yields in the belly of the curve are down about 10 basis points.
381-point Dow surge disappears as bond jitters return
"If 2.88 scared people why would they be comfortable with 2.84/2.85", said Schumacher. The job market remains healthy, as evidenced by a report Thursday that applications for unemployment benefits are at a 45-year low.
Analysts at Mizuho point out that the two-year Treasury yield is now higher than the S&P 500's forward dividend yield, which prompts a "psychological test" for investors. Now if you reverse PE (i.e. 1/24.53 or 4.07 per cent), you get what is called the earnings yield. He expects a sharp and swift correction but does not see the stock market heading into a bear market, which would be a 20 percent decline.
After rising sharply last week, U.S. Treasury yields fell from four-year highs on Monday as the selloff in equity markets sparked demand for low risk debt.
"The dust hasn't settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do", said Jonathan Corpina, senior managing partner for Meridian Equity Partners in NY.
The quick and sudden rise in Treasury yields last week came amid concern rising inflation expectations would force the Federal Reserve to speed up interest rate hikes.
William Dudley, the president of the Federal Reserve Bank of NY, said separately at a forum in Manhattan that he expected the turbulence to have virtually no outcome for the economic outlook, although further deep declines could start to change the prognosis. That compares with $420 billion net a year ago in notes and bonds.
Overseas market jitters mostly eased after plunging earlier this week.
"When yields move up there is an unsettling feeling in the equity market", said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. USA bond yields rose sharply on Monday after official data released on Friday showed United States wages were increasing at the fastest pace since 2009.
Kim Jong-un's sister to visit South Korea
The arrival of an art troupe was met with a small protest and sporadic scuffles between South Korean police and demonstrators. The North was in no rush to provide details or pictures of the parade and did not invite foreign journalists.
Illegal Cars Pulped in Corruption Omen — Philippines
Thousands of Filipinos were killed by the police , in what the authorities said were shootouts, or by unidentified gunmen . Meanwhile, Roque slammed the administration's critics, whom he said were behind the attacks against the war on drugs .
Markets Right Now: Dow falls another 500, then recovers
XIV, the second-largest publicly traded product tracking swings in the S&P 500 , will cease trading on 20 February, the bank said. Great Britain's FTSE 100 was down almost 2% in London at roughly noon local time, reflecting similar drops in France and Germany.
Pyeongchang Games set to open with Russians still in doubt
It is not easy and so you need to work to get a good run. "I think this is the craziest place I've been with all these cameras". Russian officials and athletes have indicated that not all of those who have filed appeals plan to compete if they win.
2 confirmed pediatric flu-related deaths in Alabama
Above, a student receives a flu vaccine at the annual Bouvé Health Fair and Flu Shot Clinic held in the fall. Compared to last flu season, Hays County only had 1,001 positive flu cases from September through May.
Filipina missing after Taiwan quake identified
A 50-year-old woman surnamed Wang said the quake and aftershocks had left her so shaken she didn't dare sleep in her home. Due to the structure's slant, Taiwanese media said, rescuers struggled with dizziness and vomiting during search efforts.