Inflation Plus Treasury Yields Push Stocks Down
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as inflation plus treasury yields push stocks down. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:
U.S. stock index futures fell into the red ahead of Wednesday’s open, extending losses seen in the previous trading session. Around 5.00 a.m. ET, Dow futures were down 47 points, indicating a drop of 51.75 points at the open. The Nasdaq and S&P 500 futures pointed to a flat-to-negative open for their respective markets.
The S&P 500 (SPY) fell 0.55% today as inflation plus treasury yields push stocks down. Sector decliners led advancers 8 to 2 as shown in the sector graph. Interest rate sensitive sectors such as real estate (XLRE), utilities (XLU) and consumer staples (XLP) each dropped 1% or more. Energy (XLE) also declined more than 1%. Consumer discretionary (XLY), healthcare (XLV), materials (XLB) and technology (XLK) all had minimal losses of less than 1%. Financials (XLF) and industrials (XLI) were the only 2 sectors to settle in the green by less than 1%.
The Dow Jones index lost 166 points (less than 1%) closing at 24,797. The Nasdaq had a small decline of 16 points finishing at 7,218.
Volatility returned once again as the Dow closed 166 points lower after gaining as much as 303 points earlier in the day. The 10 year bond yield reached a 4 year high after the Fed’s meeting minutes were released. The minutes revealed economic growth and increased inflation as the Fed will continue to raise rates gradually.
Some notable S&P 500 movers…
- MSFT -1%
- AMZN +1%
- FB +1%
- XOM -1%
- HD -2%
- V -1%
Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.
S&P 500 Sector Graph
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map