Stocks Slide Amid Rising Treasury Yields and Dollar Strength
- U.S. major stock indices fell as Treasury yields increased and the dollar strengthened.
- NVIDIA shares reached new highs, while Boeing's stock surged due to positive developments.
- Overall market sentiment reflected concerns over economic conditions and the Federal Reserve's future actions.
On Monday, October 21, 2024, major U.S. stock indices experienced declines as rising Treasury yields and a strengthening dollar negatively impacted investors' sentiment. The 10-year Treasury note yield surged to 4.18%, its highest since late July, with the 30-year bond yield also climbing to 4.5%. Amidst these fluctuations, the Dallas Fed President Lorie Logan indicated potential gradual rate cuts pending favorable economic conditions. The Dow Jones Industrial Average dropped 0.9%, while the Russell 2000, which tracks small-cap stocks, fell significantly by 1.7%. In contrast, shares of NVIDIA Corporation reached all-time highs, increasing over 2% to $141.80 per share, showcasing the tech sector's resilience despite broader market challenges. The CBOE Volatility Index, known as Wall Street’s 'fear gauge,' jumped by 5%, reflecting growing apprehension among investors. The SPDR S&P 500 ETF and other major ETFs displayed negative movements as traders reacted to the prevailing economic indicators, suggesting a cautious approach moving forward. Gold prices took a breather following recent gains while oil prices rebounded due to renewed supply concerns. Additionally, Boeing Co. saw a notable uptick of more than 3%, thanks to a preliminary agreement to end a strike and an order from Emirates SkyCargo, which buoyed the stock despite the overall market downturn. Overall, the trading day highlighted the mixed sentiment among investors as they navigated uncertainties related to the Federal Reserve’s actions.