: S&P 500 books 3-day drop as bond yields jump, Apple earnings on deck

The S&P 500 booked a third straight day of declines on Thursday as longer-dated Treasury yields spiked in the wake of the U.S. downgrade by Fitch Ratings. The Dow Jones Industrial Average DJIA shed about 67 points, or 0.2%, ending near 35,215, according to preliminary FactSet data. The S&P 500 index SPX closed down 0.3% and the Nasdaq Composite Index COMP shed 0.1%. Investors continued to monitor U.S. economy data against a backdrop where the nation’s credit worthiness has become a key source of debate. Fitch on Tuesday cut its U.S. ratings to AA+ from AAA, becoming the second major rating agency to do so in the past dozen years. Investors were keeping a close eye on the jump in long-term Treasury yields, with the 10 year BX:TMUBMUSD10Y rate climbing to 4.188% on Thursday afternoon and the 30-year Treasury BX:TMUBMUSD30Y yield up near 4.304%, marking the highest yield on both since November 2022, according to Dow Jones Market Data.“I think everyone is watching interest rates after the Fitch downgrade,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth Management, of climbing long-term rates. “That’s troubling for the equity market because it makes it more expensive to borrow.” He also said the selloff in stocks could be a short-lived, noting that the S&P downgrade of the U.S. to AA+ roughly a decade a go was a buying opportunity.Investors also will be digesting quarterly earnings from Apple Inc. AAPL and Amazon AMZN due after the closing bell Thursday.

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