The Dow Jones Industrial Average
on Monday managed a potent intraday reversal to eke out a modest gain, but technology shares declined for a third straight session as a period of rising rates knocked equity benchmarks around. The bond market was closed in observance of Columbus Day. The Dow
ended by up about 40 points, or 0.2%, at 26,487, but the S&P 500 index
finished the session less than 0.1% lower at 2,884, while the Nasdaq Composite Index
closed down 0.7% at 7,736. marking its third down day in succession for the tech and internet-related benchmark. Monday’s action was a continuation of Friday’s stumbles which were sparked, at least in part, by a surge of the yield of the 10-year Treasury note
on Friday to 3.23%–the highest level since 2011. Bond prices fall as yields rise. Rising yields mean higher borrowing costs for corporations and climbing rates can also make stocks comparatively less attractive than Treasurys, which are perceived as risk-free assets. Rising rates have been a particular headwind to stocks that had helped partly drive stocks to new records, including Netflix Inc.
and Amazon.com Inc.
but have since been under pressure.
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