Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets decline on Thursday as treasury yields extend climb

05-Oct2018

US markets decline on Thursday as treasury yields extend climb

The US markets declined on Thursday as a recent jump by US treasury yields has raised concerns about the outlook for interest rates. With the ten-year yield reaching its highest levels in over seven years, traders seem worried the Federal Reserve may raise rates more aggressively than currently anticipated. Adding to the concerns Fed Chairman Jerome Powell said in remarks at the Atlantic Festival in Washington, D.C. after the close of trading on Wednesday that interest rates are a long way from neutral even after recent increases. Powell said the really extremely accommodative low interest rates that they needed when the economy was quite weak, they don't need those anymore. They are not appropriate anymore. He added interest rates are still accommodative, but they are gradually moving to a place where they will be neutral. He also said they may go past neutral, but they are a long way from neutral at this point.

On the economic front, the Labor Department released a report showing a bigger than expected drop in initial jobless claims in the week ended September 29. The Labor Department said initial jobless claims fell to 207,000, a decrease of 8,000 from the previous week's revised level of 215,000. Street had expected jobless claims to edge down to 213,000 from the 214,000 originally reported for the previous week. A separate report from the Commerce Department showed a bigger than expected rebound in factory orders in the month of August. The Commerce Department said factory orders surged up by 2.3% in August after falling by a revised 0.5% in July, while street had expected factory orders to jump by 2.1%.

Dow Jones Industrial Average slipped 200.91points or 0.75 percent to 26,627.48, Nasdaq declined 145.57 points or 1.81 percent to 7,879.51 and the S&P 500 was down by 23.90 points or 0.82 percent to 2,901.61.


Related News

View all news

US markets end higher after Trump says China trade talks to continue

The US markets ended higher on Friday after key negotiators cast a positive glow on trade talks. US Secretary of Treasury Steven Mnuchin indicated that bilateral talks were constructive even though an......

US markets lower after US President claims China broke the deal

The US markets ended lower on Thursday as trade tensions ramped up after US President Donald Trump threatened tariff retaliation on China, which he claims broke the deal. Anxiety over the prospect of a......

US markets end mostly lower on Wednesday

The US markets ended mostly lower on Wednesday as worries over US-China trade talks lingered. A notice in the Federal Register formally laid the groundwork to raise tariffs on $200 billion of Chinese imports......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......