Wednesday is a risk-off session for the U.S. stock market as investors express concern in response to the mounting pressures posed by escalating oil prices and increasing U.S. Treasury yields.
WTI-graded crude rose to over $86 a barrel, while the rate-sensitive two-year Treasury yields showcased an impressive 15-basis-point increase in a day, surging over 5%. The ISM Services PMI surprisingly soared to a six-month high in August, beating expectations, while another service gauge measured by S&P Global showed a dismal picture.
The U.S. dollar also increased further, with the U.S. dollar index rising to the 105 level, the highest since mid-March 2023.
Investors are eagerly anticipating the release of the Fed Beige Book at 2 p.m. to gain further insights into qualitative economic data gathered from Federal Reserve districts.
Cues From Wednesday’s Trading:
On Wednesday, the major stock market indices all registered losses: the S&P 500 fell by 0.9%, the Dow Jones Industrial Average dropped 0.7%, the Nasdaq 100 declined by 1.1%, and the Russell 2000 was down by 0.6%.
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