US close: Stocks turn red on interest rate concerns

dl wall street new york city wall st nyc new york stock exchange nyse nasdaq us usa united states of america trading finance unsplash — Sharecast / Roberto Junior via Unsplash

Wall Street’s major indices closed in the red on Thursday, after 10-year Treasury yields surged to their highest mark since the global financial crisis of 2008.

The downward momentum came amid expectations that the Federal Reserve could sustain elevated interest rates for an extended period.

At the close, the Dow Jones Industrial Average was down 0.77% at 34,474.83, while the S&P 500 recorded a 0.77% loss to settle at 4,370.36 points.

The tech-focussed Nasdaq Composite saw an even steeper descent, finishing the day 1.17% lower at 13,316.93.

In the currency space, the dollar was last down 0.05% on sterling at 78.41p, while it depreciated 0.13% against the euro to change hands at 91.86 euro cents.

Against the yen, the greenback decreased 0.21%, and was last sitting at JPY 145.45.

“Aside from a small gain for the Dow, global stock markets remain on the back foot,” said IG chief market analyst Chris Beauchamp earlier.

“Bond yields continue to move higher, unsettling investors and diminishing the appeal of equities after their generally positive year so far.

“Signs of fear are everywhere, from a rising Vix to a surging put/call ratio, and for the moment buyers are few and far between.”

Weekly jobless claims show expected decrease

On the economic front, the Department of Labor reported earlier that US weekly jobless claims had dipped in line with market forecasts.

The latest figures indicated that for the week ended 12 August, a total of 239,000 individuals initiated unemployment insurance benefit claims.

That was a decline from the previous week's adjusted figure of 250,000, which was initially reported as 248,000.

Experts had expected the fresh print to be around 240,000.

The four-week moving average - often considered a steadier metric - stood at 234,250, marking an ascent of 2,750 from the updated average of the prior week.

Ongoing claims, which are presented a week in arrears, meanwhile rose marginally, reaching 1.72 million for the week ended 5 August, up from 1.68 million in the prior week.

Walmart, Hawaiian Electric slip; Ball Corp and Cisco Systems ascend

In equities, Walmart dipped 2.24% despite the retail behemoth reporting a 6.3% jump in second-quarter same-store sales.

The rise surpassed analysts' projection for a 4% hike.

Hawaiian Electric Industries tumbled 15.34% as it faced mounting criticism in the wake of the recent Maui wildfires, with many laying the blame at the company's doorstep for purported mismanagement during the crisis.

On the upside, Ball Corporation advanced 1.63% on the announcement of its aerospace division's sale to BAE Systems.

The deal's worth was pegged at a substantial $5.55bn.

Cisco Systems climbed 3.34% after it announced fourth-quarter results after the market close on Wednesday, with earnings surpassing predictions set by industry analysts.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $54.73 3.34%
Dow Chemical Co. (DOW) $53.86 1.01%
3M Co. (MMM) $101.80 1.00%
Johnson & Johnson (JNJ) $174.01 0.94%
Chevron Corp. (CVX) $159.96 0.71%
Caterpillar Inc. (CAT) $275.31 0.24%
Coca-Cola Co. (KO) $60.61 0.21%
Merck & Co. Inc. (MRK) $108.92 0.17%
International Business Machines Corporation (CDI) (IBM) $140.73 0.01%
Dowdupont Inc. (DWDP) $0.00 0.00%