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BUSINESS
US Stock Market Today: Nasdaq Slumps Over 1%, S&P 500, Dow In Red As Bond Yields Spike
The Dow Jones Industrial Average was down by 0.7%, with the S&P 500 falling by the same amount, the Nasdaq Composite logged a 1.3% reduction.
GlobeSignal-AIlow certainty
- Why it matters
- Higher bond yields make stocks less attractive relative to safer fixed-income investments, prompting investors to sell equities and shift capital.
- Most affected
- Equity investors holding diversified US stock portfolios — Portfolio values declined across all three major indices on this trading day.
Savers considering stock versus bond allocation — Bond yields became more competitive, shifting the relative appeal of bonds versus equities. - Likely next
- Whether yields stabilize or continue rising at next market open, and whether the indices recover the day's losses or decline further.
Also reported by: Yahoo Finance