Market Snapshot: Dow falls 200 points as Fed’s Powell says higher rates may be needed, with Treasury auction weak

by | Nov 9, 2023 | Stock Market

U.S. stocks fell to session lows Thursday afternoon, after a weak Treasury auction and Federal Reserve Chair Jerome Powell said higher interest rates might be needed to tame inflation. That jeopardized the S&P 500’s longest winning streak in two years.

How are stock trading
Dow Jones Industrial Average
was down 217 points, or 0.6%, at 33,891, after touching a session low of 33,875.97 in afternoon trade.

S&P 500
fell 31 points, or 0.7%, at 4,351.

The Nasdaq Composite
fell 104 points, or 0.8%, to 13,545.

On Wednesday, the S&P 500 rose for the eighth straight session, while the Nasdaq Composite rose for the ninth. For both indexes, it was the longest winning streak since November 2021, Dow Jones Market Data show. What’s driving markets U.S. stocks turned lower Thursday afternoon after a $24 billion sale of 30-year Treasury bonds went poorly. Stocks remained lower after Fed Chair Jerome Powell, in a speech at the International Monetary Fund, suggested interest rates might not be high enough yet to bring inflation sustainably down to the central bank’s 2% target. Powell said the Fed’s 2% goal “is not assured: Inflation has given us a few head fakes.” Recent volatility in longer duration Treasurys have been credited with driving the action in stocks in recent weeks. “It’s still a focus and is probably what is taking a little bit of the steam away from the equity rally today,” said James Ragan, director of wealth management Research at D.A. Davidson, in an phone interview. “It’s the fear that those higher rates out on the curve will act as a brake on the economy,” Ragan said. The S&P 500 gained 6.5% during its eight-day winning streak, coinciding with the 10-year Treasury yield’s
retreat from a 16-year peak around 5% to around 4.5% on signs of a cooling U.S. jobs market. But the yield was back to 4.6% Thursday as stocks slumped. Thursday’s drop for the S&P 500 put a ninth-straight day in the green on the line. I …

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