S&P 500 books 3-day drop as bond yields jump, Apple earnings on deck

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The S&P 500 booked a third straight day of declines on Thursday as longer-dated Treasury yields spiked in the wake of the U.S. downgrade by Fitch Ratings....

The S&P 500 booked a third straight day of declines on Thursday as longer-dated Treasury yields spiked in the wake of the U.S. downgrade by Fitch Ratings. The Dow Jones Industrial Average DJIA, -0.19% shed about 67 points, or 0.2%, ending near 35,215, according to preliminary FactSet data. The S&P 500 index SPX, -0.25% closed down 0.3% and the Nasdaq Composite Index COMP, -0.10% shed 0.1%. Investors continued to monitor U.S.

Investors were keeping a close eye on the jump in long-term Treasury yields, with the 10 year TMUBMUSD10Y, 4.181% rate climbing to 4.188% on Thursday afternoon and the 30-year Treasury TMUBMUSD30Y, 4.299% yield up near 4.304%, marking the highest yield on both since November 2022, according to Dow Jones Market Data.

“I think everyone is watching interest rates after the Fitch downgrade,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth Management, of climbing long-term rates. “That’s troubling for the equity market because it makes it more expensive to borrow.” He also said the selloff in stocks could be a short-lived, noting that the S&P downgrade of the U.S. to AA+ roughly a decade a go was a buying opportunity.

Investors also will be digesting quarterly earnings from Apple Inc. AAPL, -0.73% and Amazon AMZN, +0.55% due after the closing bell Thursday.

 

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