The Dow Jones Industrial Average fell Wednesday, building on the steep losses from the previous session, as an uptick in Treasury yields and oil prices dented investor sentiment.
The 30-stock index fell 68.61 points, or 0.20%, landing at 33,550.27. Earlier in the session, it was up as much as 112.77 points. The S&P 500 edged up 0.02% to close at 4,274.51, while the Nasdaq Composite added 0.22% to end the session at 13,092.85.
The benchmark 10-year Treasury yield hit its highest levels since 2007. The 2-year Treasury yield also climbed. Meanwhile, U.S. crude futures popped more than 3% to settle at $93.68 per barrel.
Energy was the best-performing sector, rising 2.5%. Notable gainers include Marathon Oil
and Devon Energy, both up more than 4%.
Those moves come after the S&P 500 on Tuesday fell below the key 4,300 level for the first time since June. The Dow also posted its biggest one-day loss since March, dropping more than 300 points to close below its 200-day moving average for the first time since May.
Stocks have come under pressure recently from rising rates and disappointing economic data.
“Inflation remains the big concern,” said Greg Bassuk, CEO of AXS Investments. “Investors have been very anxious about not only the elevated rate, but how that impacts companies with the higher borrowing costs.”
September is a seasonally weak month for stocks. Indeed, the S&P 500 is down by 5% month to date, while the Dow is down more than 3%. The Nasdaq is the laggard of the three, losing more than 6% this month.
Bassuk expects volatility could continue in the coming weeks. However, he expects some strong buying opportunities later in October leading up to year end.
