US Stocks Plummet, S&P 500 and Nasdaq Face Weekly Losses

Thansettakij•Economy•5d ago

Reader Briefing

Wall Street indices and Asian markets declined following a rise in long-term US government bond yields.

•The S&P 500 and Nasdaq Composite declined by 0.9% and 1% respectively on Thursday.
•Long-term US government bond yields rose after government efforts to stop bond sell-offs failed to ease inflation concerns.
•Asian markets, including the Nikkei 225 and Kospi, also experienced declines.
•Ross Stores shares surged over 7% in after-hours trading following better-than-expected second quarter results.

•The S&P 500 decreased by 1.9% and the Nasdaq decreased by 2.5% since the start of the week.
•The Dow Jones Industrial Average declined 1.8% since the start of the week and is likely to drop for the second consecutive week.
•In Asia, the Nikkei 225 dropped 0.92%, Topix dropped 0.40%, Kospi dropped 1.07%, and the Kosdaq dropped 2.44%.
•The S&P/ASX 200 in Australia declined by 0.21%.
•The Thursday downturn occurred after long-term US government bond yields rose due to persistent investor concerns regarding inflation.
•Ulrike Hoffmann-Burchardi of UBS stated that the US Treasury cannot create money to buy assets unlike the Federal Reserve's quantitative easing.
•Ulrike Hoffmann-Burchardi of UBS noted that Treasury bond buybacks are funded by other sources, such as issuing more treasury bills, which adjusts debt maturity rather than reducing total debt.
•Ross Stores shares rose more than 7% in after-hours trading after the company reported second quarter earnings that beat expectations.