Wall St Falls, Yields Rise on Hot Labour Cost Data
Tesla dipped 5.2% following a 15% surge in the previous session after a report that CEO Elon Musk had dismissed two senior executives and plans to lay off hundreds more employees.
Wall Street's main indexes fell on Tuesday with caution prevailing ahead of the 's interest-rate decision and as stronger-than-expected labour costs hinted at persistent inflation. US labour costs increased in the first quarter amid a rise in wages and benefits, confirming the surge in early in the year that will likely delay a much-anticipated cut later in 2024.In midday trading, the benchmark 10-year yield rose 4.7 basis points (bps) to 4.659%. The yield on the 30-year Treasury bond was up 3.2 bps at 4.767%. On the short end of the curve, the U.S. two-year Treasury yield, which typically reflects interest rate expectations, rose to hit its highest since November at 5.03%. The yield was last up 3.9 bps to 5.01%.
At 2345 IST, the Dow Jones Industrial Average was down 372 points, or 0.97%, at 38,013, the S&P 500 was down 43 points, or 0.84%, at 5,073, and the Nasdaq Composite was down 170 points, or 1.06%, at 15,813.
Tesla dipped 5.2% following a 15% surge in the previous session after a report that CEO Elon Musk had dismissed two senior executives and plans to lay off hundreds more employees.
Ten of the 11 S&P 500 sectors were trading lower, with rate-sensitive sectors such as utilities and real estate among the worst hit. Energy led losses with a 1.4% fall.
Source: Stocks-Markets-Economic Times
