The First Slice for Friday, September 16, 2022

U.S. stocks closed lower on Thursday with technology stocks leading the way down, as bond yields marched further ahead of a likely Federal Reserve interest rate rise next week.

  • The Dow finished lower -173.27 or -0.56%
  • The S&P 500 dropped -44.66 or -1.13%
  • The Nasdaq declined -167.32 or -1.43%

Big technology stocks led declines Thursday with the 2-year Treasury yield trading around 40 basis points above the 10-year yield, suggesting an economic slowdown ahead as investors digested a mixed batch of economic data. 

The yield on the 2-year Treasury note climbed for a sixth straight trading session on Thursday, reaching its highest level since October 2007. The 2-year yield BX:TMUBMUSD02Y rose 8.9 basis points to 3.871%, while the 10-year yield BX:TMUBMUSD10Y was up 4.7 basis points to 3.458%.

With stocks still smarting from Tuesday’s disappointing U.S. consumer price inflation data which triggered the worst one-day selloff in two years, investors were relieved though that a nationwide railway strike had been averted.

The stocks of railroad operators were mixed as President Biden spoke publicly to confirm the news of the deal, with Union Pacific Corp. up 0.2%, while Canadian Pacific Railway Limited finished 1.3% lower. The Dow Transportation Average was down 1.1%. 

In U.S. economic data Thursday, retail sales rose 0.3% in August as Americans spent more on new cars and trucks and went out to eat more, suggesting the economy grew at a steady pace toward the end of the summer.

Meanwhile, new jobless benefit claims fell by 5,000 to 213,000 in the week ended Sept. 10, the Labor Department said, suggesting the labor market remains healthy.

However, two regional gauges of manufacturing sentiment moved into slight contraction territory in September, according to data released Thursday. 

As the weekend approaches, market participants are looking ahead to next week’s two-day Federal Reserve policy meeting, where the central bank is largely expected to hike its benchmark interest rate by 75 basis points or more……..Click here to read the source article[read more]

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