Rising bond yields send Dow plunging

October 10, 2018 - 3:43 pm

(WWL.com) -- A massive selloff on Wall Street sent the major stock indices plunging more than three percent, one of the worst days for the market this year.

It's thanks in part to concerns about surging treasury yields. Investors fear rates are rising too far, too fast, threatening to derail the economy. Attractive yields can push investors away from the riskier equity market and into the relatively benign treasury market – and that was certainly the case today.

The Dow Jones industrials plunged 831 points, or 3.1 percent. The S&P 500 dropped 94 points. That’s 3.3 percent. And, the Nasdaq composite plummeted 316, or 4.1 percent.

Oil prices fell sharply in line with the Wall Street selloff and as investors awaited data expected to show a third-straight weekly rise in U.S. oil inventories.  November crude plunged 2.4 percent, settling at $73.17 a barrel. 

Comments ()