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Dow marks longest losing skid in 7 weeks as government bond yields hover near 3%
The Dow Jones Industrial Average on Monday finished in negative territory for a fourth straight session, marking its longest losing trend since early March, as Wall Street wrestled with rising government bond yields. The Dow closed off about 14 points, or less than 0.1%, at 24,448. The four declines in a row represent the lengthiest downdraft for the blue-chip gauge since a similar period ended March 2, according to FactSet data. The S&P 500 index , meanwhile, closed virtually unchanged at 2,670, while the Nasdaq Composite Index finished the session down 0.3% at 7,128. The advance in U.S. interest rates, notably the 10-year Treasury note yield to near 3% , has come as traders increasingly start to price in four interest-rate hikes in 2018 from the Federal Reserve, rather than the three signaled by policy makers. Higher rates translate into increased borrowing costs for U.S. corporations and the level at around 3% is viewed as a threshold at which bonds can compete with investor appetite for other investments, like stocks, market participants said. In corporate news, shares of Box Inc. surged by nearly 11% after Venture capitalist, Chamath Palihapitiya, said shares of the cloud-storage company had room to run higher and that the company would benefit from advancements in artificial intelligence. Separately, shares of Alcoa Corp slumped 12% as the Treasury Department said it has extended its wind-down period for dealing with Russian company Rusal, a major industrial metals mining company.
Source : MTV
