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S&P 500, Nasdaq, and Dow Industrial Average React to Rising Treasury Yields & Disappointing Earnings

S&P 500 Declines as Treasury Yields Move Higher

The S&P 500 has declined following an unsuccessful attempt to stay above the 4150 level. The rising Treasury yields, considered a bearish signal for stocks, have contributed to the decline. On Thursday, many indices were moving lower, with a widespread drop in values.

Baxter was the biggest loser in the S&P 500, with the most disappointing earnings report of the day. As a result, the company saw a decline of more than 10% in its stock value, adding to the overall downward trend in the market.

Despite the overall decline in the S&P 500, some companies are performing well, with Tesla leading the way. The company’s ongoing rebound is due to its ongoing price cuts, which have doubled its value from last year.

Aside from the decline, there is a brighter side to the S&P 500. The index faced resistance at the 4150-4200 sweet spot, indicating that there may be some underlying strength in the market. As the number of pullbacks increases, traders and investors closely monitor the situation to see if the Federal Reserve will push interest rates higher to fight inflation.

Nasdaq Closes Below 12,500 Level on Disappointing Earnings & Rising Treasury Yields

The Nasdaq index faced a tough day, closing below the 12,500 level as the biggest loser, Alphabet, pulled the ratings down. The company was under pressure from investors after disappointing demonstrations of Google BARD, its ChatGPT competitor.

The rise in Treasury yields also played a role in the index’s decline, as the yields are fighting to settle above the 4.5% level. This increase in yields may put further pressure on the tech-heavy index.

The tech sector has been a major growth driver for the stock market in recent years, but the sector is facing increased competition and mounting pressure from investors. The disappointing earnings and demonstrations for ChatGPT’s competitor are a reminder of the risks and uncertainties in the tech sector.

Dow Industrial Average Stays Put at 34,000 Level as Traders Await More Catalysts

The Dow Industrial Average remains 34,000 as traders wait for more market catalysts. Disney was the biggest winner in the index, with investors welcoming the company’s plans to cut jobs that could lead to increased dividends.

However, it still needs to be determined if the index will continue the current trend in the upcoming sessions. The biggest threat to the index is the Treasury yields, which have the potential to impact the market in a significant way.

Investors are cautious and waiting for more information on the market outlook and news on the Treasury yields. The Dow has shown resilience in recent sessions, but keeping an eye on the Treasury yields and other potential market catalysts is important.

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