Stock market declines as Treasury yields rise, casting doubt on Fed rate cut

From Investing.com: 2024-10-07 16:25:47

The S&P 500 slipped on Monday as Treasury yields rose following a strong September jobs report, dimming hopes for a big Fed rate cut next month. Stocks fell, with the dropping 398 points, the down 1%, and the slipping 1.2%. Treasury yields jumped, putting pressure on stocks. The yield on the 10-year Treasury ended above 4% for the first time since August, signaling bets on a jumbo-rate cut are easing. Federal Reserve officials are set to speak this week, offering monetary policy clues after the strong jobs report. Minneapolis Fed President Neel Kashkari welcomed the strong jobs report, reinforcing the central bank’s focus on the labor market as key data is set to be released this week, including inflation and Q3 earnings reports from major banks like JPMorgan Chase and Wells Fargo. Alphabet Inc Class A fell over 2% after a U.S. judge ruled in favor of an antitrust lawsuit against its Google Play store, Pfizer stock rose 2.2% on news of activist investor Starboard Value’s stake, Hershey Co fell 2% after a UBS downgrade, and Amazon.com fell over 3% after a Wells Fargo downgrade.

In summary, the stock market saw declines as Treasury yields rose on the back of a strong jobs report, raising doubts about a big Fed rate cut next month. Key data releases and Q3 earnings reports are expected this week. Tech giant Alphabet faced challenges over its app store, while Pfizer stock rose on activist investor news. Hershey Co saw a downgrade, and Amazon.com faced a downgrade due to competition concerns from Walmart.



Read more at Investing.com: S&P 500 closes lower as spike in Treasury yields weigh By Investing.com