Stocks decline due to higher bond yields and Fed concerns

From Nasdaq: 2024-05-29 12:51:05

US stock indexes are down today, with the Dow Jones hitting a 3-1/2 week low due to higher bond yields and concerns over Fed interest rates. May consumer confidence increased unexpectedly, impacting the markets. Companies like ConocoPhillips and Merck & Co. are engaging in M&A activities, supporting stock performances. Expectations of a positive Q1 earnings season are also boosting stocks. Mortgage applications in the US fell -5.7% for the week ended May 24, with the 30-year fixed rate mortgage increasing slightly. The Richmond Fed manufacturing outlook survey in May reached a 7-month high, exceeding expectations. Expectations for a rate cut at the June 11-12 FOMC meeting currently stand at 0% and 10% for the following meeting. Overseas markets show mixed results, with Euro Stoxx 50 down and China’s Shanghai Composite up. Interest rates are up, with the 10-year T-note yield at 4.608% and European bond yields moving higher. German CPI rose by +2.8% y/y, and the GfK consumer confidence index improved. American Airlines cuts Q2 EPS forecast, leading to a decrease in airline stocks. Managed healthcare stocks are down after UnitedHealth Group announcements. Regional bank stocks are falling after a downgrade by Citigroup. Sage Therapeutics, Cava Group, Marathon Oil, Apple, Dick’s Sporting Goods, Chewy, and Abercrombie & Fitch show significant stock movements. Earnings reports from companies like Advance Auto Parts, Agilent Technologies, and Dick’s Sporting Goods are expected today.



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