Stocks posted their worst day of the year Tuesday as banks faced
pressure from falling yields and traders turned their eyes to a key
House vote.
The Dow fell 237 points, with Goldman Sachs contributing the lion's share of the losses. The S&P 500 dropped 1.24 percent, with financials falling more than 2.5 percent to lead decliners. The indexes were also posted their first decline of at least 1 percent since October.
"We're settling back into the middle of the range in the 10-year yield. That certainly has taken the air out of financials lately," said Art Hogan, chief market strategist at Wunderlich Securities.
U.S. Treasury yields traded mixed, with the benchmark 10-year note yield holding around 2.42 percent and the short-term two-year note yield trading around 1.26 percent. Weaker yields lead to lower interest rates on loans, which hurt financial stocks, particularly banks.
Read more: Dow sinks more than 200 points as stocks post worst day of the year
The Dow fell 237 points, with Goldman Sachs contributing the lion's share of the losses. The S&P 500 dropped 1.24 percent, with financials falling more than 2.5 percent to lead decliners. The indexes were also posted their first decline of at least 1 percent since October.
"We're settling back into the middle of the range in the 10-year yield. That certainly has taken the air out of financials lately," said Art Hogan, chief market strategist at Wunderlich Securities.
U.S. Treasury yields traded mixed, with the benchmark 10-year note yield holding around 2.42 percent and the short-term two-year note yield trading around 1.26 percent. Weaker yields lead to lower interest rates on loans, which hurt financial stocks, particularly banks.
Read more: Dow sinks more than 200 points as stocks post worst day of the year
No comments:
Post a Comment