Stocks Fall as Rising Bond Yields Spark Risk-Off Sentiment ...
The S&P 500 Index ( $SPX) ( SPY) today is down by -0.28%, the Dow Jones Industrials Index ( $DOWI) ( DIA) is down by -0.48%, and the Nasdaq 100 Index ( $IUXX) ( QQQ) is down by -0.29%. December E-mini S&P futures ( ESZ25) are down -0.35%, and December E-mini Nasdaq futures ( NQZ25) are down -0.44%.
Stock indexes are moving lower today as higher bond yields spark risk-off sentiment in asset markets. The 10-year T-note yield is up +7 bp to 4.08% on negative carryover from a surge in 10-year Japanese bond yields to a 17-year high after Bank of Japan (BOJ) Governor Ueda offered his clearest signal yet that the BOJ could raise interest rates again at this month’s BOJ meeting. Bitcoin is down by more than 7% today, at a 1-week low, further weighing on market sentiment. Strength in energy producers today is a positive factor for stocks, with WTI crude up more than 1% at a 1-week high.
Today’s US economic news was bearish for stocks after the Nov ISM manufacturing index unexpectedly fell -0.5 to a 14-month low of 48.2, weaker than expectations of an increase to 49.0. Also, the Nov ISM price paid sub-index unexpectedly rose +0.5 to 58.5, stronger than expectations of a decline to 57.5 and a sign of lingering price pressures.
Weaker-than-expected Chinese economic news was bearish for global growth prospects. The China Nov manufacturing PMI rose +0.2 to 49.2, weaker than expectations of 49.4. Also, the Nov non-manufacturing PMI fell -0.6 to 49.5, weaker than expectations of 50.0 and the weakest report in almost three years.
The price of Bitcoin ( ^BTCUSD) is down more than -7% today at a 1-week low after the People’s Bank of China (PBOC) said Saturday that “risks of speculation and hype surrounding virtual currencies have resurfaced” and that virtual currencies do not have the same legal status as fiat currencies, lack legal tender status, and should not be used as currency in the market. Bitcoin also came under pressure on comments from the CEO of Strategy, who said that his firm could sell Bitcoin if its mNaV, the ratio of enterprise value to the value of Bitcoin holdings, goes below 1x.....
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