US stocks continued to slide during late-morning trading on Friday, with benchmark Treasury yields on the retreat after spiking to 5% in the wake of comments by Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average (^DJI) fell 0.4% or 140 points, while the S&P 500 (^GSPC) shed 0.8%, both on track for a losing week after Thursday’s sell-off. The tech-heavy Nasdaq Composite (^IXIC) dropped 1.25%.
Stocks lost ground after Powell signaled the Fed is committed to its “higher for longer” rates stance, which spurred gains in Treasury yields. The benchmark 10-year yield (^TNX) rose briefly to 5% late on Thursday, a closely watched level not seen since July 2007.
“The underlying message is ‘don’t be looking for a bailout from the Fed anytime soon,’” Greg Whiteley, a portfolio manager at DoubleLine, told Reuters. “That gives people the go-ahead to take rates above 5%.”
On Friday, the yield on the 10-year retreated from that key level, dropping to around 4.91%, as part of a broader recovery in fixed-income assets. But the “pain trade” in bonds could have further to run, even after weeks of putting pressure on stocks.
Investors looking to earnings to lift the downbeat mood have yet to find relief, despite strong financial reports.
Also still weighing on shaky markets is the risk of the Israel-Hamas war turning into a wider Middle East conflict, after Israel’s defense chief hinted at a ground assault on Gaza at the weekend.
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Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in morning trading on Friday:
Enphase Energy (ENPH): The energy-focused technology company fell 10% Friday morning, following a brutal earnings report from solar equipment maker SolarEdge Technologies (SEDG), which experienced “substantial unexpected cancellations” from its European distributors triggering a sell-off among solar-based stocks.
Intuitive Surgical (ISRG): The healthcare robotics company shed 5% Friday after the company’s third-quarter revenue missed expectations.
Regions Financial Corp (RF): Shares dropped over 15%, after the lender said on Friday it expects its fourth-quarter net interest income to decline.
Knight-Swift Transportation (KNX): The trucker’s shares surged 10%. Knight-Swift reported quarterly earnings of $0.41 per share on Thursday, beating analysts’ estimates.
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Stocks open lower as investors grapple with bond market surge
Wall Street rang in the day with pessimism as investors looked past strong corporate earnings this week and focused on the rise in 10-year Treasury yields, , which briefly crossed 5% Thursday.
The S&P 500 (^GSPC) edged lower by about 0.1%, while the Dow Jones Industrial Average (^DJI) slipped just under the flat line, falling 0.04% or roughly 12 points. The tech-heavy Nasdaq Composite (^IXIC) lost 0.4%.
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KAmEx, Regions Financial, and Knight-Swift: Stocks trending in premarket trading
Here are some of the leaders on Yahoo Finance’s trending tickers page ahead of Friday’s market open:
American Express (AXP): The credit card giant’s shares fell about 1% after it reported third-quarter profit that beat expectations on Friday.
Regions Financial Corp (RF): Shares in Regions fell over 7%, after the lender said on Friday it expects its fourth-quarter net interest income to decline.
Knight-Swift Transportation (KNX): The trucker’s shares surged 12%. Knight-Swift reported quarterly earnings of $0.41 per share on Thursday, beating analysts’ estimates.
Bitcoin (BTC-USD): The leading cryptocurrency rose above $30,000 to its highest level since July on Friday.
— by Jenny McCall
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Stock futures slip as bond rout eases
US futures pointed Friday to a lower open as the 10-year Treasury yield pulled back from a spike that took it to 5%.
Futures on the Dow Jones Industrial Average (^DJI) were down 0.21%, or 71 points, while S&P 500 (^GSPC) futures dropped 0.30%. Contracts on the tech-heavy Nasdaq 100 (^NDX) fell 0.39%.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
