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TODAY IN THE USA
Stocks fell on Thursday as bond yields continued to fall and investors were wary after the market achieved a string of new highs last week.
The Dow Jones Industrial Average dropped 450 points, or 1.1 percent, while the S&P 500 index dropped 1.3 percent. The Nasdaq Composite Index was down 1.4 percent at the time of writing. The Nasdaq composite was down more than the broader market due to some of the greatest losses among technology companies. Bond yields continued to fall as traders feared the Federal Reserve will begin to unwind some of its stimulus measures. The 10-year Treasury note rate has dropped to 1.30 percent. At the end of March, it reached a high of 1.74 percent. The largest settlement ever reached by Robinhood: In a world-record settlement, a brokerage was fined $70 million for disruptions and deceiving consumers. Investors have oscillated between optimism about an economic rebound and apprehension that the Fed and other central banks may reduce support to ease price pressures. The Fed’s most recent meeting minutes revealed that officials are getting closer to halting bond purchases, though most analysts don’t anticipate this to happen until late this year. Policymakers announced at their last meeting that they aimed to hike interest rates as soon as 2023, a year sooner than expected. Bonds fell partly as the number of Americans registering for unemployment benefits increased marginally last week, despite the fact that the economy and labor market looked to be recovering from the coronavirus slump. (Photo courtesy of Getty Images) According to the Labor Department’s report released on Thursday, unemployment claims jumped by 2,000 from the previous week to 373,000. Weekly applications, which are a good indicator of layoffs, have been progressively declining this year after peaking at over 900,000 at the beginning of the year. Beginning next week, when large banks like JPMorgan Chase, Goldman Sachs, and Bank of America announce their results, investors will be focused on corporate earnings. Because banks are often used as a proxy for the wider economy, investors will be paying close attention to what the banks are seeing in terms of lending and expenditure. http://www.usatoday.com/story/money/markets/2021/07/08/stock-market-dow-drops-450-points-investors-turn-cautious/7900792002//n
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