- US stock indices experienced a slight downturn on Wednesday due to concerns about the Federal Reserve’s monetary easing plans.
- Major indices including the Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite all reported losses.
- Shares of major companies such as Uber Technologies, Shopify, and Tesla also saw significant declines.
US stock indices edge lower as Treasury yields rebound, stirring concerns about the Federal Reserve’s monetary easing plans. Major companies report significant losses.
US Stock Indices Report Losses
On Wednesday, US stock indices edged lower as Treasury yields rebounded on worries about the Federal Reserve’s monetary easing plans. At 09:38 a.m. ET, the Dow Jones Industrial Average fell 7.11 points, or 0.02 per cent, to 38,877.15, the S&P 500 lost 16.17 points, or 0.31 per cent, to 5,171.53 and the Nasdaq Composite lost 88.08 points, or 0.54 per cent, to 16,244.48.
Major Companies Report Declines
Shares of Uber Technologies slumped 8.9 per cent after reporting poor second quarter results. Shopify tumbled 21.1 per cent despite reporting better earnings than expected. Tesla shares declined 3.1 per cent after Reuters reported that US prosecutors were examining whether the EV maker committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities. Chipmaker Intel lost 2.4 per cent after the US commerce department revoked licenses for exports to a Chinese client. Shares of Microsoft, Nvidia and Alphabet fell between 0.3 per cent and 1.1 per cent.
Rebound in Treasury Yields
US Treasury yields rebounded on Wednesday. The yield on the 10-year Treasury rose to 4.48 per cent from 4.46 per cent late on Tuesday.
Crude Oil and Bullion Market Update
Oil prices fell on Wednesday as crude and fuel inventories in the US rose. Brent crude futures fell 97 cents, or 1.2 per cent, to $82.19 a barrel by 1240 GMT. US West Texas Intermediate crude futures lost 93 cents, or 1.2 per cent, to $77.45 a barrel. Gold prices were flat on Wednesday. Spot gold was flat at $2,315.98 per ounce by 1127 GMT. US gold futures was down 0.01 per cent to $2,324.00 per ounce. Spot silver fell 0.1 per cent to $27.24 per ounce.
Conclusion
Wednesday saw a slight downturn in US stock indices due to concerns about the Federal Reserve’s monetary easing plans. Major companies reported significant losses, contributing to the overall decline. The rebound in Treasury yields and the decline in oil prices further complicated the market outlook.
