Stock Market Today: Dow futures struggle to gain traction as Treasury yields rise further
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 306 points, or 0.7%, at 42,623. It was poised to match its longest losing streak since Aug. 5.
The S&P 500 was down 35 points, or 0.6%, at 5,817.
The Nasdaq Composite was down 180 points, or almost 1%, at 18,395.
Market participants are “looking at stickier inflation and strong growth over a period of time, as well as the ramifications of the election, and 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 buisiness returns more difficult.”