The stock market’s decline coincided with a significant increase in bond yields. However, market experts remain cautiously optimistic about the overall trajectory.
The Dow had the weakest performance among the three major indexes during Tuesday’s session, primarily due to several declining stocks.
As investors and analysts await the official jobs report for October, the 2-year and 10-year Treasury yields moved in opposite directions.
Investors will be eyeing major announcements ahead this week such as jobs report, Federal Reserve rate decision, and Apple’s earnings.
One of the most striking aspects of this market turmoil was the sharp increase in the Nikkei volatility index, which surged to 23.87, a level not seen in a long while.
Rise in the US Treasury Yields put pressure on the market resulting into bearish weekly start on Wall Street. Yields surge past 5% with Fed planning for higher-than-longer interest rates.
The ripple effect of the Chinese market plunge has extended to other major Asian markets, with Japan’s Nikkei 225 and South Korea’s Kospi also experiencing declines.
Bitcoin dominance has regained 51 percent of the total crypto market valuation despite the recent struggle to rally beyond $28k amid short-term market uncertainty caused by puzzles of economic geopolitics.
This is not the first time Israel’s central bank has intervened in the foreign exchange market to stabilize the shekel.
Analysts have warned that the rise in the bond yields could pose significant challenge to equity market and other risky investments like crypto.
One of the primary drivers of the recent tech stock downturn is the surge in bond yields.
The new product is set to give investors exposure to the Bitcoin value movements on the underlying CoinDesk Bitcoin Price Index (XBX) and will only be settled in the United States dollar.
The day’s trading was marked by mediocrity, with the European markets generally treading water before closing in the red.
Concerns about higher interest rates can lead to reduced borrowing, higher financing costs, and a potential slowdown in economic activity.
The Nasdaq saw a lower close as tech stocks fell after Oracle released figures that disappointed Wall Street.