Dow Jones Industrial Average falls a third day as bond yields climb
The 30-year Treasury yield touched 5.50% on Thursday, and two Fed officials gave bond buyers no reason to expect relief. New York Fed President Williams said another rate increase this year looks reasonable, and Philadelphia Fed President Paulson said rates may need to rise a little more.
The Dow Jones Industrial Average experienced its third consecutive day of decline as bond yields continued to rise. New York Fed President William hinted at the likelihood of another rate increase this year, while Philadelphia Fed President Paulson suggested that rates might need to rise further. Among the three largest Dow component companies to suffer losses, Sherwin-Williams was especially hard-hit, alongside Walmart and International Business Machines.
Despite a report on potential progress in US-Iranian talks and a higher rate for Brent crude, the index closed at its lowest level since mid-June. The S&P 500 and Nasdaq Composite finished the day flat and higher respectively, thus leaving the Dow as the sole decliner among the major indices. The Dow closed below its 50-day moving average, a level that has remained above the index since mid-September, indicating a departure from its recent bullish trend.
The Stochastic Relative Strength Index, a momentum indicator, dropped below 20 for the first time since late July, signaling potential bearish momentum.
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