TLT - S&P 500 Nasdaq Face Uphill Battle As Bond Yields Rise; Analyst Pins Hope On Key Jobs Data This Week | Benzinga
The negative sentiment that has enveloped the equity market in recent sessions persists amid a lack of clarity regarding the interest rate trajectory. Stock futures point to a narrowly mixed start on Wednesday. A labor market reading, some service sector activity data, and a couple of Federal Reserve speeches are among the key market-moving events of the session. Oil prices tumbled, potentially weighing down on energy stocks. Risk aversion may also come into play amid the brewing political uncertainty following the ouster of Kevin McCarthy (R-Calif) as House Speaker.
If the data points support a pullback in yields, bargain hunting could kick in, setting the stage for the averages to bounce back from their four-month lows.
Cues From Tuesday’s Trading:
Stubbornly high bond yields and data showing much more than expected job openings for August aggravated the market weakness on Tuesday. The major averages opened lower and fell sharply in the morning session. The selling pressure decelerated in the afternoon session and yet the indices closed notably lower for the session.
The major averages all pulled back to a four-month low, while the Russell 2000 Index ended at its lowest since March 23.
The selling was broad-based, although defensive utility stocks gained some ground. Real estate, financial, IT, consumer discretionary, and communication services stocks were among the worst hit.
US Index Performance On Tuesday
Index Performance (+/-) Value
Nasdaq Composite -1.87% 13,059.47
S&P 500 Index -1.37% 4,229.45
Dow Industrials -1.29% 33,002.38
Russell 2000 -1.69% 1,727.15
Analyst Color:
“With a market keenly focused on the path of interest rates, any data release that points to the possibility of a stronger wage environment is cause for concern to a market that is anxiously deciphering when — and hopefully ...