Markets in 5Monday, October 19
Tech and chip stocks led US indexes lower on Friday
Tech and chip stocks led US indexes lower on Friday, with the S&P 500 down 1.9% for the week and the ten-year yield at 5.09%.
Stocks
Major US indexes fall as tech selloff deepens
The S&P 500 closed at 7,659.44 on Friday, October 16, down 1.1%, and lost 1.9% over the week. The Nasdaq Composite fell about 2.1%, its steepest one-day drop since July 23, and lost 4.48% for the week. The Dow closed at 52,002.41, down about 0.3% on the day but up 0.7% for the week, its second straight weekly gain. The Russell 2000 fell 1.66% to 2,721.37 and lost 3.05% over the week.
Sectors
Chip stocks extend losing streak to eight sessions
Semiconductor stocks led the decline, with the PHLX semiconductor index down for an eighth straight session, matching its longest losing run since 2006. According to Investrade's market review, the equal-weighted S&P 500 had its best week against technology shares since 2009. AI-linked stocks were among the main drags on the tech-heavy indexes.
Rates
Ten-year Treasury yield eases to 5.09%
The ten-year Treasury yield closed at 5.09% on October 16, down 1 basis point from 5.10% the day before, according to the Treasury's official par yield data. The two-year yield was 4.74%, leaving the 2s10s spread at 35 basis points. The 30-year yield was 5.43%, while the ten-year stood at 3.99% a year earlier. Some analysts linked the stock selloff to higher borrowing costs, citing a strong US inflation report released on October 14.
The Fed
Traders ease Fed rate-hike bets after Warsh remarks
Bloomberg reported on Sunday that traders pared bets on the Federal Reserve raising interest rates this month after remarks by Fed Chair Kevin Warsh. Gold edged higher in Asian trade on the news. The Wall Street Journal had said traders were weighing the prospect of further rate increases this year.
Global
Nikkei falls 1.8% as Wall Street losses spread
Japanese stocks were lower in early trade, with the Nikkei down 1.8%. Commerzbank said a further selloff in US technology shares was a theme from Friday's session, and that pressure carried into Asian markets. The decline followed the Friday losses on Wall Street.