US STOCKS-Wall St slides over 1% as Treasury yields hover at 16-year peaks

Immunovant

26/09/2023 19:17

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        * 
      All 11 S&P 500 sectors sink, utilities drop most
    

        * 
      Moody's warns government shutdown bad for U.S. credit
    

        * 
      U.S. sues Amazon.com for breaking antitrust law
    

        * 
      Indexes down: Dow 1.19%, S&P 500 1.4%, Nasdaq 1.48%
    

  
 (Updates with mid-afternoon trading)
    By Lewis Krauskopf, Ankika Biswas and Shashwat Chauhan
       Sept 26 (Reuters) - Wall Street's main indexes sank over
1% on Tuesday as 10-year Treasury yields held their multi-year
highs, with investors still wrestling with prospects for a long
period of high interest rates and the economic fallout.
    Adding to investor anxiety was the potential of a partial
U.S. government shutdown by the weekend, which ratings agency
Moody's warned would harm the country's credit.
    Benchmark 10-year Treasury yields have climbed to 16-year
highs in the wake of the Federal Reserve's hawkish longer-term
rate outlook last week.
    Yields may trend higher until Friday's personal consumption
expenditures price index gives a fresh view of the inflation
picture, said Jack Janasiewicz, portfolio manager at Natixis.
    "The market is still trying to digest the potential for
where that 10-year rate is going to finish," Janasiewicz said.
"Until we get more clarity on where the 10-year settles, then
the equity market is going to be pretty nervous."
    The Dow Jones Industrial Average  .DJI  fell 403.54 points,
or 1.19%, to 33,603.34, the S&P 500  .SPX  lost 60.68 points, or
1.40%, to 4,276.76 and the Nasdaq Composite  .IXIC  dropped
197.01 points, or 1.48%, to 13,074.31. 
    All 11 S&P 500 sectors were lower. Rate-sensitive utilities
 .SPLRCU  and real estate  .SPLRCR  sank 2.2% and 1.7%,
respectively, while the heavyweight tech sector  .SPLRCT 
dropped 1.8%.
    Energy  .SPNY  held up best among the sectors, down 0.5%,
with crude prices above the $90-per-barrel mark. However, rising
energy prices represent a renewed threat to inflation, which has
generally been moving down toward the Fed's 2% target.
    The S&P 500 has slumped nearly 7% since late July but
remains up over 11% for 2023.
    Megacap stocks that have propelled indexes higher this year
were mainly dragging on Tuesday. Apple  AAPL.O  and Microsoft
 MSFT.O  both fell about 2%.
    Amazon.com  AMZN.O  shares dropped 3.4% as the U.S. Federal
Trade Commission filed a long awaited antitrust lawsuit against
the online retailer.
    Investors later in the week also will have their eyes on
other data including on durable goods and second-quarter gross
domestic product, as well as remarks by Fed policymakers such as
Chair Jerome Powell.
    In company news, Immunovant  IMVT.O  shares doubled after
early-stage data from the company's experimental antibody
treatment exceeded analysts' expectations.
    Declining issues outnumbered advancers by a 4.8-to-1 ratio
on the NYSE. There were 33 new highs and 300 new lows on the
NYSE.
    On the Nasdaq, declining issues outnumbered advancers by a
1.8-to-1 ratio. The Nasdaq recorded 27 new highs and 308 new
lows.

 (Reporting by Lewis Krauskopf in New York, Ankika Biswas and
Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and
Richard Chang)
 ((Ankika.Biswas@thomsonreuters.com;
Shashwat.Chauhan@thomsonreuters.com))