10-Year Treasury Yield Reaches 3.5% as Xylem and IBM Layoffs Weigh on Market
The yield on the benchmark 10-year U.S. Treasury note rose to 3.477%, up from 3.461% on Wednesday. The WSJ Dollar Index saw an increase of less than 0.1 On Tuesday’s stock market, the Dow Jones Industrial Average rose a fraction, the S&P 500 index ended just below break-even, and the Nasdaq composite fell 0.2%.
The yield on the 10-year U.S. Treasury rose to 3.5% Thursday morning, attempting to recover from a two-day decline. Bonds have been increasing for the past four weeks, causing the 10-year yield to be close to its lowest point since mid-September. Benchmark 10-year Treasury note yields, meanwhile, were marked at 3.356% in overnight trading. The yield on two-year notes dropped to 4.133%, resulting in an even more pronounced yield curve inversion – an indicator that is usually associated with a recession. The U.S. dollar index, measuring the performance of the greenback against a basket of foreign currencies, rose by 0.19% to 101.82, yet still near its lowest point in the past eight months.
Shares of water technology stock Xylem sank 8.2% on news that the company is acquiring Evoqua Water Technologies. IBM has become a part of the latest wave of unemployment, announcing that it will be laying off approximately 3,900 employees. Cuts will be made by Kyndryl Holdings, the IT services business IBM separated from in 2020. The company announced that it would incur a $300 million loss in the first quarter to cover employee severance costs.
Tesla (TSLA) officially expects production of 1.8 million vehicles, but CEO Elon Musk said two million deliveries is the internal goal. In 2022, Tesla manufactured 1,369,611 automobiles and delivered 1,313,851 of them The number of deliveries made in the last three quarters has been increasing quarter by quarter. He stated on a call that 1.8 million cars will be delivered in this year, showing a 37% increase from 2022, which is lower than the company’s desired 50% target.
The Dow Jones Industrial Average remained unchanged, the S&P 500 decreased by 0.02%, and the Nasdaq Composite declined by 0.2%. The Dow Jones Industrial Average remained the same, whereas the S&P 500 increased by 0.08%. The Nasdaq Composite experienced an increase of 0.26
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