Stocks Slide as Bond Yields Surge: Market Update

Stock futures dipped slightly as the Dow Jones Industrial Average turned negative for the year. The Dow lost 1.3% in its worst session since March, while the S&P 500 tumbled 1.4% and the Nasdaq Composite ended 1.9% lower. Rising bond yields and strong job openings data raised concerns about the labor market and the potential impact of higher interest rates. The 10-year and 30-year Treasury yields hit their highest levels since 2007, and the average rate on the 30-year fixed mortgage approached 8%. The Japanese yen strengthened against the US dollar, and DoubleLine Capital CEO Jeffrey Gundlach warned of a possible recession based on the tightening spread between 2-year and 10-year Treasury yields. Cal-Maine Foods reported weaker-than-expected earnings, causing its stock to drop nearly 12%. The Dow Jones Transportation Average closed below its 200-day moving average for the first time since June, potentially indicating further declines. The probability of a quarter-point rate hike at the next Fed meeting rose to 31%.