Mixed Markets as Fed Eyes Interest Rate Hikes, US Treasury Yields Rise

Rates remain a point of focus for investors as the Federal Reserve is expected to hike interest rates at least two more times to the 5% level.[0] Stocks on Thursday were mixed, with the Dow Jones Industrial Average (DJIA) leading and the S&P 500 (SPX) and Nasdaq 100 (NDX) tumbling as the 10-year Treasury yield rose 0.034% to 4.03%.[1] Oil was rising, and the yield on the benchmark 10-year U.S. Treasury rose above 4%.[2]

The yield on the benchmark 10-year U.S. Treasury note moved upward to 3.98% Wednesday morning, while crude oil traded weaker at $77.03 a barrel.[3] The yield on the 2-year Treasury note continued to trade near its highest level since 2007.[0] At 1:[4] The Dow Jones Industrial Average (DJIA) has risen by 0.3% as of EST[5] The S&P 500 (SPX) and the Nasdaq 100 (NDX) have both decreased by 0.2% and 0.3%, respectively[5]

Two stocks made decisive moves lower.[6] Rivian Automotive (RIVN (opens in new tab)) saw a drop of 18.3% following their announcement of an estimated production of 50,000 vehicles for 2023, which was lower than what analysts had predicted.[7] RIVN reported revenue that was lower than expected for the fourth quarter; however, its per-share loss was smaller than predicted.[6] SNOW, the stock of Snowflake Inc, saw a decrease of -6% in pre-market trading due to their Q4 results beating expectations but providing a weak outlook for Q1.[8]

Shares of Salesforce (NYSE:CRM) surged by more than 15% following the announcement of the company’s fourth quarter results and guidance, which exceeded expectations. CEO Marc Benioff is looking to boost profits in order to counter the pressure from multiple activist investors.[8] Meanwhile, Tesla (NASDAQ:TSLA) stock fell 8.15% after an investor day event during which Chief Executive Elon Musk provided few details on when it will unveil a much awaited affordable electric vehicle.[9]

The latest economic data revealed that 190,000 people filed for unemployment insurance last week, indicating that the labor market is still quite strong.[1] The jobless claims report from the Labor Department is set to be unveiled at 8:30 a.m.[2]

0. “Why Are Stocks Down Today?” InvestorPlace, 2 Mar. 2023, https://investorplace.com/2023/03/why-are-stocks-down-today-22/

1. “Stock market news today: Stocks rally as Salesforce’s 11% gain lifts Dow while S&P, Nasdaq reverse early losses” Yahoo News, 2 Mar. 2023, https://news.yahoo.com/stock-market-news-today-march-2-2023-135533324.html

2. “Nasdaq, S&P Futures Slide As Bond Yields Stay Above 4%: Economic Signals Ominous But Don’t Panic Yet, Say” Benzinga, 2 Mar. 2023, https://www.benzinga.com/news/earnings/23/03/31162059/nasdaq-s-p-futures-slide-as-bond-yields-stay-above-4-economic-signals-ominous-but-dont-panic-yet-sa

3. “Stock market news today: S&P 500, Nasdaq fall, yields rise after hawkish Fedspeak” Yahoo News, 1 Mar. 2023, https://news.yahoo.com/stock-market-news-live-updates-march-1-2023-124448484.html

4. “Dow futures up 70 pts; jobless claims, retail earnings in focus By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/dow-futures-up-70-pts-jobless-claims-retail-earnings-in-focus-3020141

5. “Stock Market News Today: Stocks Finish Green Thanks to Fed’s Bostic” TipRanks, 2 Mar. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-remain-volatile-as-yields-climb-higher

6. “Stock Market Today: Stocks Struggle to Start March” Kiplinger’s Personal Finance, 1 Mar. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-030123-stocks-struggle-to-start-march

7. “Stocks Mixed As Global Bond Yields Jump” Barchart, 1 Mar. 2023, https://www.barchart.com/story/news/14667507/stocks-mixed-as-global-bond-yields-jump

8. “Stocks Mixed Before The Open As Bond Yields Tick Higher On Fed Concerns, ECB Minutes In Focus” Barchart, 2 Mar. 2023, https://www.barchart.com/story/news/14699726/stocks-mixed-before-the-open-as-bond-yields-tick-higher-on-fed-concerns-ecb-minutes-in-focus

9. “U.S. stocks are mixed as Treasury yields spike By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/us-stocks-are-mixed-as-treasury-yields-spike-3020619