Dow heads for third straight session of declines as New York afternoon trading begins
All three major U.S. stock indexes remained lower into Wednesday’s afternoon trading, with the Dow Jones Industrial Average on track for its third straight day of losses as rising Treasury yields weighed on risk-taking sentiment.
The Dow was down 292 points, or 0.7%, at roughly 42,633. It was poised to match its longest losing streak since Aug. 5.
The S&P 500 was down 37 points, or 0.6%, at around 5,816.
The Nasdaq Composite was down 196 points, or 1%, at 18,377.
Market participants are “looking at stickier inflation and stronger growth over a period of time, as well as the ramifications of the election. All of that is coming into play to push long-term yields higher and is weighing on equities in a pretty dramatic way,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments in Atlanta, which oversees roughly $3 billion.
With long-term rates still at three-month highs, equity investors “have to assume a higher cost of capital over time, which makes business returns more difficult,” Buchanan said via phone.