Published: Wed, May 16, 2018
Markets | By Otis Pena

United States stocks close lower amid rising Treasury yield

United States stocks close lower amid rising Treasury yield

The S&P 500 index fell 18.69 points, or 0.7% to 2,711.44.

In Asia, shares declined on Wednesday in morning session after North Korea pulled out of high-level talks with Seoul and as US Treasury yields rose to the highest level in seven years overnight.

Analysts said investors also anxious that the climbing borrowing costs may slow the economy.

Banks, which stand to prosper because of higher interest rates on loans, bucked the downward trend. The Dow Jones Small-Cap Growth TSM Index closed at 9,941.29 for a loss of -8.02 points or -0.08%. Smaller rival Lowe's Companies Inc (LOW.N) was down 1.0 percent. Apple Inc. fell 0.9%.

Tuesday ended an eight-day run of consecutive gains for the Dow Jones.

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On the economic front, advance estimates of U.S. retail and food services sales for April were 497.6 billion U.S. dollars, an increase of 0.3 percent from the previous month, in line with market expectations, said U.S. Commerce Department on Tuesday. At 3.08% earlier today, it was the highest yield since July 2011.

Stocks give back a chunk of their May rally at the open, as spiking bond yields prompt investor concern about the potential for accelerated Fed rate hikes; Dow -0.7%, S&P -0.8%, Nasdaq -1%. The Nasdaq climbed 32 points, or 0.4 percent, to 7,435. In China, the Shanghai Composite Index fell 0.43%.

Stocks are opening moderately lower across the board on Wall Street, led by declines in technology and consumer-focused companies.

The Dow Jones industrial average lost 162 points, or 0.6 percent, to 24,739.

A surge in USA government bond yields to their highest level in nearly seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China. The Nasdaq composite fell 75 points, or 1 percent, to 7,335.

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