NEW YORK (Reuters) – U.S. shares eased on Wednesday as Treasury bond yields fell once more and a protracted inversion within the yield curve fanned fears of a U.S. financial slowdown.
Benchmark 10-year Treasury yields slid, however got here off 15-month lows reached in a single day, as buyers remained targeted on central financial institution dovishness globally.
The yield curve inverted for the primary time since 2007 on Friday and, if the inversion persists, some specialists say it might point out a recession is probably going in a single to 2 years.
Bank and monetary shares fell, with the S&P 500 monetary index ending down zero.four p.c.
“The inverted yield curve, that’s what worries investors and it’s why you’re getting selling here. It’s definitely a slowing economy indicator, and whether it goes into a recession or not, nobody really knows. But it will put a pause in the market,” stated Alan Lancz, president of Alan B. Lancz & Associates Inc, an funding advisory agency based mostly in Toledo, Ohio.
Worries about world development have risen not too long ago amid weak financial information, and the Federal Reserve final week deserted projections for any rate of interest hikes this 12 months.
The European Central Bank grew to become the most recent central financial institution to delay a deliberate improve in charges amid rising threats to development.
The Dow Jones Industrial Average fell 32.14 factors, or zero.13 p.c, to 25,625.59, the S&P 500 misplaced 13.09 factors, or zero.46 p.c, to 2,805.37 and the Nasdaq Composite dropped 48.15 factors, or zero.63 p.c, to 7,643.38.
Lennar Corp rose three.9 p.c as the No. 2 U.S. homebuilder stated it anticipated the housing market to enhance, whereas shares of KB Home, which reported upbeat outcomes late Tuesday, have been up 2.7 p.c.
Also serving to was a survey that confirmed mortgage functions within the week ended March 22 rose almost 9 p.c amid decrease rates of interest, in response to the Mortgage Bankers Association.
Centene Corp’s shares fell 5 p.c after the well being insurer stated it might purchase smaller rival WellCare Health Plans Inc for $15.27 billion. Shares of WellCare jumped 12.three p.c.
Declining points outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored decliners.
The S&P 500 posted 29 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 32 new highs and 64 new lows.
Volume on U.S. exchanges was 6.97 billion shares, in contrast with the 7.64 billion-share common for the total session during the last 20 buying and selling days.
Reporting by Caroline Valetkevitch; extra reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; modifying by Jonathan Oatis
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