US Markets
Stocks Fade as Yields Hit Fresh Highs
A rate spike knocked the majors lower, even as tech and communication services outperformed.
U.S. stocks ended in the red after a session that started firmer and faded late. The S&P 500 fell 0.8% to 7,706.0, the Nasdaq Composite lost 0.7% to 26,936.0, the Dow dropped 1.0% to 51,511.6, and the Russell 2000 fell 1.3% to 2,838.7.
The pressure point was rates. The 10-year Treasury yield rose 3.0% to 5.114, the 5-year yield climbed 3.4% to 4.997, and the 30-year yield gained 2.0% to 5.401. CNBC Markets said the jump followed services and manufacturing data that stoked worry about more Fed hikes.
Even with the weak close, parts of the market held up. Tech rose 2.9%, Communication Services gained 3.9%, and Discretionary added 1.3%. Financials fell 2.0%, Energy lost 1.1%, and Utilities slipped 0.3%.
The intraday S&P 500 path was ugly but orderly: it opened near the top of the range, drifted lower, bounced a few times, then slipped into the close. SPY was nearly flat, down 0.02%, while QQQ rose 0.8% and DIA gained 0.8%.
Options flow leaned cautious. SPY put volume topped call volume, with a put/call ratio of 1.17, and QQQ showed an even heavier tilt toward puts at 1.44.