Rising interest rates send stocks tumbling; tech plunges

Rising bond yields stoke fears of global stock market retreat

The following content is sourced from external partners.

Then came the release of the ISM's non-manufacturing index showing that growth in the USA services sector hit a record high. Higher rates lifted financial firms.

The U.S. Treasury selloff on Wednesday was the biggest story in the financial markets.

"How does the stock market adjust for that?" The Turkish lira and South African.

"A Federal Reserve that is raising rates to prevent the US economy from overheating is constraining the policy options of countries where financial conditions are tightening and trade tensions intensifying".

Bond prices fell. The yield on the 10-year Treasury jumped to 3.12 percent.

"Good news for economy is bad news for equity investors right now", said Michael Geraghty, equity strategist at Cornerstone Capital Group's in NY.

Fed Chair Jerome Powell said on Wednesday that the US central bank had a long way to go before interest rates hit neutral, indicating that more hikes could be on the horizon. "We haven't seen anything like it since the (2016 presidential) election". The ECB this month cut monthly asset purchases in half, while the Fed balance sheet unwind continues.

The benchmark 30-year yield also ticked higher to 3.348 as did shorter duration yields, such as the five-year yield heading higher to 3.048 and the two-year yield rose to 2.88.

It was the bond and currency markets, though, where the attention was really trained.

Terminal users can read our Markets Live blog.

Investors are expected to scour the USA government's September payroll report, scheduled for release on Friday, and look closely for signs of wage growth, especially in light of anecdotal indications of rising wages.

The Reserve Bank of India's policy decision is due Friday.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3 percent, while Japan's Nikkei .N225 dropped 0.5 percent and Australian benchmark .AXJO was up just 0.1 percent.

Daily vitamin D pill 'makes no difference to strength of bones'
Others point to some of the trials in the meta-analysis having a small number of participants and short treatment spans. So says a new study that looked at data from 81 controlled trials that involved more than 53,000 people, CNN reports.

Stocks, in turn, have fallen broadly, with the Dow suffering its first decline in six sessions and both the S&P 500 and Nasdaq seeing their worst day since June 25.

Super Micro Computer sank nearly 50 percent after the Bloomberg's report that China implanted tiny chips on motherboards supplied by the company.

The Nasdaq dropped 3.2 percent this week and the Russell tumbled 3.8 percent.

Emerging market stocks lost 0.98 percent, closing at a 17-month low.

Average hourly earnings of private-sector workers rose 2.8 percent to 27.24 dollars in September from a year ago, said the department.

The dollar index .DXY was flat, with the euro EUR= up 0.31 percent to $1.1512.

The dollar slipped to 113.73 yen from 113.86 yen.

A steep sell-off in Treasury bonds that started midweek and pushed 10-year yields to seven-year highs has weighed on stocks and rippled through bond markets globally.

Danske Bank fell 2.3 per cent after it discontinued its share buyback programme and said it was in talks with United States authorities about non-resident accounts at its Estonian branch, which are at the centre of a $235 billion money laundering scandal.

The spread of Italy's 10-year bonds over Germany's decreased one basis point to 2.828 percentage points.

West Texas Intermediate (WTI) crude futures rose 44 cents to $74.77 a barrel by 10:46 a.m. EDT (1446 GMT).

In commodities, Brent crude oil was down 0.2% at $86.15 a barrel and gold was up 0.1% at $1,198.95 a troy ounce.

Form for signing up for free newsletter.

-With assistance from Adam Haigh, Tom Freke, Samuel Potter and Sophie Caronello.

Related News:

Most liked

Assam Govt slashes prices on petrol and diesel; reduces Value-Added Tax in state
In BJP-ruled states, the reduction was higher as they matched the cut with a similar reduction in local sales tax or VAT . Bihar government also reduced petrol and diesel prices by Rs 2.52 and Rs 2.55 per litre respectively on Friday.

CDC Identifies 16 States Affected By Ground Beef Salmonella Outbreak
Last year's salmonella outbreak involving papayas imported from Mexico sickened 46 people in 12 states and killed one of them. At least 57 people across 16 states have gotten sick due to the outbreak, according to the USDA report released Thursday.

SpaceX Rocket Seen Across California
A graphic explaining sonic booms, provided by Vandenberg Air Force Base ahead of a planned SpaceX launch on October 7, 2018. If the mission goes according to plan, Sunday night will mark SpaceX's first landing of this sort on the West Coast.

‘I should have scored more’, says four-goal Mbappe
A foul on Mbappe set up Neymar's early penalty before Mbappe scored four times over a 13-minute span of the second half. Neymar was brought in to be PSG's superstar, but there is no doubting Mbappe's credentials as the main man in Paris .

Mattress Firm Files For Bankruptcy; Arkansas Stores Remain Open For Now
The company hasn't yet identified which stores it will close, including any in Wichita. Krim estimated that about 10 to 12 percent of mattress sales are online.

Melania Trump calls Brett Kavanaugh 'highly qualified,' glad his accuser 'was heard'
The first lady has said that she looks forward to spreading the message of her "Be Best" child-welfare initiative. Still, Melania stands behind her husband even if she doesn't agree with how he handles his social media presence.

Fans Fight and Confront Police After Conor McGregor, Khabib Nurmagomedov Fight
The men jumped into the Octagon and swung at McGregor, and were subsequently arrested following the insane melee. "I don't understand how people can talk about I jump on the cage".

Five talking points ahead of the Japanese Grand Prix
Lewis Hamilton had a lot of sympathy for Bottas as well as he was seen consoling his teammate after the race and at the podium. Vettel will probably need a couple of Hamilton retirements in order to win the championship.

Lewis Hamilton win Japan Grand Prix and moves closer to drivers' championship
Daniel Ricciardo recovered from 15th to fourth, while Kimi Raikkonen was fifth on a desperately torrid afternoon for Ferrari . Mexican Sergio Perez took best of the rest honours for Force India in seventh while Romain Grosjean was eighth for Haas.

U.S. actively considering waivers on Iran oil sanctions
Similarly, Iran's crude exports to China increased by 29,000 billion per day to 620,000 billion per day last month. Throughout the week, hedge funds and speculators were active in the market, buying at dips and pushing prices up.

Cardiff manager takes aim at 'poor' Kane
All afternoon there's been busy people around him. "I wouldn't be surprised if the linesman said something". Warnock said at his post-match media conference: "You don't go off like that".

Pep Guardiola confirms shock team news ahead of Liverpool clash
We were close, more than ever to winning here but it is better than last season and we compete really really good. However, Klopp's exciting progress with this team means that this group has to deal with more scrutiny.

Magnitude 5.9 natural disaster hits northern Haiti
He had said earlier he was headed to Port-de-Paix and another quake-hit city, Gros-Morne, about 50 kilometers to the southeast. After shocks were reported in the Caribbean, including the Dominican Republic, Puerto Rico and the Virgin Islands.

Treyarch preview brand new 'Militia' multiplayer map in Black Ops 4
The map was early teased in the trailer itself, so fans have been waiting for this official announcement to clear all doubts. Firing Range is a map from the first game as well, and it is set in a military base in Guantanamo Bay, Cuba.

Wife Says Interpol Officer Sent Knife Image as Danger Signal
Grace Meng, the wife of missing Interpol President Meng Hongwei, who does not want her face shown, spoke in France on Sunday. She asked journalists not to show her face as feared for her own safety and the safety of her two children.