Stock market today
Dow 30: 35,228.81,-65.38(-0.19%)
Russell 2000: 2,091.07,-42.03(-1.97%)
Stock market news today
“U.S. stocks fell after rallying earlier this week, as investors eyed developments on discussions between Russia and Ukraine and mulled mixed data on the U.S. economy.
The S&P 500 declined. The blue-chip index ended a four-day winning streak as technology shares led declines, pulling the Nasdaq Composite down by1.2%. The CBOE Volatility Index, or VIX, rose back above 20 after reaching its lowest level in more than two months on Tuesday.
U.S. crude oil prices rose for the first time in three sessions Wednesday after dipping earlier this week amid signs of progress in Russia-Ukraine talks. Russia said it was easing military action in Ukraine’s capital Kyiv and northern city Chernihiv and was prepared to set a meeting between Russian President Vladimir Putin and Ukraine’s President Volodymyr Zelenskyy following a draft peace agreement. However, as of Wednesday, some media reports suggested strikes were still taking place near both major cities in Ukraine.
Meanwhile, investors nervously eyed a flattening U.S. Treasury yield curve, with longer-duration bond yields falling much more sharply than those on the short end as traders bet on higher rates from the Federal Reserve in the near-term and mulled a murky macroeconomic outlook over the longer-term. The benchmark 10-year yield edged higher Wednesday morning and topped 2.4%.
The spread, or difference, between the 2-year and 10-year Treasury note yields — a closely watched part of the yield curve which has typically inverted ahead of recessions — narrowed to its lowest level since 2019 earlier this week. (It inverted for a few seconds on Tuesday.)
“It is still a pretty accurate indicator [of a recession] if we go back and look at history, but I have to give you a few caveats,” Kristina Hooper, Invesco chief global market strategist, told Yahoo Finance Live on Tuesday. “First of all, it needs to invert for some time, typically three months, to be a very accurate indicator. Second, it’s a longer-term indicator. So usually after the yield curve inverts, it takes about 18 months on average for a recession to occur. And it is a terrible, terrible sell signal, because typically stocks have room to run and do run significantly higher after a yield curve inverts.”
Stock market data: Yahoo Finance