Stocks start sharply lower as bond yields spike

  • Stocks start sharply lower as bond yields spike

Stocks start sharply lower as bond yields spike

The market had rallied early Monday on hopes that trade tensions were easing between the US and China.

Core April retail sales - which excludes gasoline, automobiles, building materials and food services - rose at a brisker 0.4 percent monthly pace over March, as consumer spending is quickening its pace after a first-quarter slowdown. The S&P 500 erased 18.68 points, or 0.68 percent, to 2,711.45. Smaller rival Lowe's Companies Inc was down 1.0%.

Bond prices fell, sending yields higher, after the government reported a solid increase in USA retail sales last month.

Apple fell 1 percent, Amazon fell 1.9 percent and Wells Fargo climbed 0.9 percent.

The Dow Jones industrial average fell 193 points to close at 24,706.41, with Home Depot among the biggest contributors of losses. At 3.08% earlier today, it was the highest yield since July 2011.

On Sunday, the US President Donald Trump pledged to help the Chinese technology company ZTE to "get back into business quickly" after US sanctions hurt the Asian company significantly.

President Donald Trump tweeted over the weekend that the US could ease sanctions on ZTE.

The Dow lost 183 points, or 0.7 percent, to 24,715. The Dow Jones Small-Cap Growth TSM Index closed at 9,941.29 for a loss of -8.02 points or -0.08%. The Nasdaq composite fell 60 points, or 0.8 percent, to 7,349.

Stocks are moving mostly lower in midday trading on Wall Street, led by technology and health care companies.

Bond prices fell. The yield on the 10-year Treasury rose to 2.99 percent.

USA companies that would stand to benefit from an effort to rescue ZTE, a Chinese technology company hurt by US tariffs, rose in early trading Monday. The Nasdaq composite tumbled 1% and the S&P 500 0.8%.

Among the technology stocks pressuring the overall market, Alphabet Inc., the parent company of Google, fell 2%, while Facebook Inc. lost 1.2%.