Dow Rebounding After Selloff; Fed Fallout; Dollar Soars; Treasury Yields Rise; Nvidia, More Movers; Government Shutdown
Wall Street was sifting through the rubble Thursday after yesterday’s steep stock market selloff.
The major indexes were rising, but their initial gains shortly after the market opened have been pared back significantly. The Dow was up 274 points, or 0.7%, after rising more than 400 points shortly after the open.
The S&P 500 was up 0.6%, while the Nasdaq Composite was up 0.7%. The Russell 2000, which is sensitive to rates, was lagging behind with a decline of 0.3%.
The CBOE Volatility Index, after surging north of 27 on Wednesday, was down 16%. The VIX is still at 23.32; any reading north of 20 signals heightened volatility.
The yield on the 10-year Treasury note was up to 4.561% as traders reacted to the latest inflation forecasts from Fed officials and fretted about a looming deadline for lawmakers to avert a government shutdown.
At the sector level, health care, materials, and real estate were the biggest laggards in the S&P 500. Utilities, financials, and communication services were leading the way. Nearly 300 S&P 500 stocks were rising, which would be the first time a majority of stocks in the index rose on the same day this month.
The Dow is also on track to snap its 10-day losing streak.
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