Tuesday, September 20, 2022

Wall Street opens lower amid fears over rising rates

Malay Mail

NEW YORK, Sept 19 — US stocks opened lower today as bond rates continued to rise ahead of a Fed meeting expected to lead to a new rate hike, stoking fears among traders of a hard landing for the country’s economy.

Around 1400 GMT, the Dow Jones was down 0.35 per cent, the Nasdaq lost 0.37 per cent and the broader S&P 500 0.41 per cent.

“The stock market is beset with the same issues that caused it problems last week. Interest rates are going up, as are worries that those rising rates will lead to a hard landing for the economy and greatly diminished earnings prospects,” Patrick O’Hare of Briefing.com said in a note.

The yield on 10-year US government bonds was at 3.49 per cent today, up from 3.44 Friday.

But Art Hogan of B. Riley Wealth Management said that even more than the 10-year benchmark, “everything seems to be in lockstep with the yield on the two-year, which in and of itself tends to track our interpretation of where the Fed is going to take rates.”

The two-year rate was at 3.95 per cent, up from 3.86 on Friday, its highest level in nearly 15 years. — AFP




Source: Malay Mail

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