Thursday, 4 October 2018 23:26 WIB |
MARKET UPDATE |DOW JONESS & P 500Saham AS
The Dow Jones Industrial Average in Thursday action was on track for its worst day in more than three months as investors reacted to a recent surge in government bond yields.
The Dow was down about 280 points, or 1.1%, at 26,548, at last check, retreating firmly, a day after posting its 15th record of 2018. A drop of that severity would mark the blue-chip benchmark's worst one-day decline since about June 25, according to FactSet data.
The slump comes as the 10-year Treasury yield has punched up to seven-year highs at 3.21%, causing investors in stocks to reassess the comparative appeal of equities, considered risky assets, against so-called risk-free government debt.
Moreover, rising rates translate in to higher borrowing costs for corporations. Only financials, including large banks were trading higher early Thursday among the S&P 500 index's sectors.
The technology-centric Nasdaq Composite Index meanwhile, was down 1.7% at 7,886, tumbling sharply, while the S&P 500 traded 1% lower at 2,897.
Source : Market Watch