DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Stocks extended their decline Thursday as a surge in Treasury yields rattled markets and renewed concern about additional Federal Reserve rate hikes.

Nvidia led semiconductor shares lower, adding pressure to a technology sector already retreating during early trading.

The 10 year Treasury yield sat near 5.1%, while the 30 year yield climbed to its highest level since 2004.

The sharp bond market volatility raised questions about whether stocks could face a larger pullback.

The market opened lower as investors monitored the turmoil in bonds and looked toward the upcoming summit between President Trump and Chinese leader Xi Jinping. The Dow, S&P 500, and Nasdaq had also sold off as yields surged on inflation worries.

Wednesday had already delivered another significant bond market milestone.

The 10 year Treasury yield rose to its highest level since 2007, setting the stage for further pressure when trading resumed Thursday.

A market snapshot based on a heat map powered by Yahoo Finance AlphaSpace data showed technology shares falling in the opening minutes.

Chip heavyweight Nvidia led semiconductor stocks lower as enthusiasm around major technology names weakened.

Amazon shares also declined alongside Microsoft. The drops placed several of the market’s most closely followed technology companies on the losing side of Thursday morning’s early trading.

The weakness followed a period in which technology and semiconductor stocks had attracted attention from investors.

Earlier items in the market feed reported that technology stocks rallied as artificial intelligence enthusiasm returned, while AMD reached a new record as semiconductor shares bounced.

Those gains did not carry through Thursday’s opening trade. Instead, rising Treasury yields became the market’s dominant concern, with investors questioning whether bond volatility might develop into something more substantial for stocks.

The Dow, S&P 500, and Nasdaq had previously wavered as oil prices and bond yields increased.

They later rebounded after a Federal Reserve rate hike as oil prices eased, according to other reports in the market feed.

The Federal Reserve raised interest rates for the first time in 3 years, another item reported.

President Trump criticized that decision after rates moved into a range from 3.75% to 4%.

Trump posted that interest rates in the United States should be 1% or less. The Dow dropped 600 points as bond yields surged following the Federal Reserve’s decision, adding to the market’s recent volatility.

Energy markets also remained prominent in the morning trading picture. Brent crude futures for November delivery hovered near $105, while West Texas Intermediate traded near $94.

Other reports said oil remained close to $100 per barrel without any indication of a resolution in the Middle East.

That fueled speculation that the Trump administration might consider an export fuel ban before the midterm elections to force fuel prices lower.

Trump said Tuesday that he would support banning diesel fuel exports amid calls from Republicans ahead of the midterms.

Analysts cited elsewhere in the feed warned that such a move would tighten global supply.

The pressure was not limited to stocks and bonds. Bitcoin dropped near $83,000, while gold also slipped and hovered near $4,300 during the early market check.

 

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.