US stocks trending lower amid rising bond yields
|Major US equity indices witnessed yet another weaker opening on Wednesday as investors remained wary of the ongoing upsurge in bond yields.
Firming expectations that the Federal Reserve will continue raising interest rates beyond December kept pushing the US Treasury bond yields higher and undermined demand for perceived riskier assets - like equities.
Higher yields have also caused market participants to reassess equity valuations, which remain elevated by some measures ahead of the third-quarter earnings season and amid expectations for strong corporate results in coming days.
However, the rising yields are also seen as a reflection of a strong economy, which has been reinforced by incoming positive US economic data points. In the latest data released this Wednesday, the US PPI rose 0.2% in September, while the core PPI was up 0.4%, though did little to provide any meaningful impetus.
Today's downfall marks the fifth consecutive session of losses for the broader S&P 500 Index, its longest streak since November 2016. The index has also dipped below 50-day SMA, which might now act as a catalyst for fresh technical selling or lead to increased volatility in the near-term.
At the time of writing this report, the Dow Jones Industrial Average lost around 125-points to 26,304, while tech-heavy Nasdaq Composite underperformed the markets and was down nearly 85-points to 7,654.
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