NEW YORK, NEW YORK - U.S. stocks tumbled on Tuesday as interest rates on 10 and 30-year Treasury yields approached 5 percent, and mortgage rates hovered at just under eight percent. The U.S. dollar continued higher, although the Japanese yen strengthened significantly amidst rumors of central bank intervention.
"The threat to equities is more along the interest rate side. We really need to get through this bond sell-off, and find some type of equilibrium in the bond market, before we think stocks will be able to find a bottom," Chris Zaccarelli, chief investment officer at Independent Advisor Alliance told CNBC Tuesday.
S&P 500 (^GSPC): The S&P 500, a broad representation of the U.S. stock market, finished the day at 4,229.45, shedding 58.94 points or 1.37 percent. The index's decline was notable, impacting investor sentiment throughout the trading day. Trading volume reached 2.405 billion shares.
Dow Jones Industrial Average (^DJI): The Dow Jones Industrial Average, comprised of 30 major U.S. companies, closed Tuesday at 33,002.38, down 430.97 points, representing a 1.29 percent decrease. The Dow's performance mirrored the broader market trend, and trading activity stood at 291.372 million shares.
NASDAQ Composite (^IXIC): The tech-heavy NASDAQ Composite took a substantial hit, closing at 13,059.47, reflecting a decline of 248.31 points or 1.87 percent. The drop was largely attributed to concerns about the technology sector's outlook. A significant 4.015 billion shares were traded on the NASDAQ.
U.S. Dollar Consolidates Gains on Global Foreign Exchange Markets Tuesday
Currency traders pushed the greenback higher again on Tuesday. Only the Japanese yen foudn support and that was believed to be from the Japanese central bank. As the yen approached the crucial 150 level, buying accelerated pushing the yen back towards 147. The dollar then rebounded to above 149 before late trading saw the yen trading in the late 148s.
Here are the quotes for the major currencies in late U.S. trading Tuesday:
EUR/USD (Euro/US Dollar): The euro weakened slightly against the dollar, with the exchange rate closing at 1.0476. This represents a decrease of 0.00008, or 0.01 percent.
USD/JPY (US Dollar/Japanese Yen): The Japanese Yen, after a roller-coaster ride, settled at 148.80, a dcline of 1.046 or 0.70 percent.
USD/CAD (US Dollar/Canadian Dollar): The U.S. Dollar gained against the Canadian dollar, reaching 1.3709. This reflects an increase of 0.00339, equivalent to a 0.25 percent rise for the greenback.
GBP/USD (British Pound/US Dollar): The British Pound remained relatively stable against the dollar, settling around 1.2086, pretty much unchanged.
USD/CHF (US Dollar/Swiss Franc): The Swiss Franc, fell to 0.9210 Tuesday. This indicates a loss of 0.00279 or 0.30 percent.
AUD/USD (Australian Dollar/US Dollar): The Australian Dollar weakened significantly after the Reserve Bank of Australia left official interest rates unchanged at 4.1 percent, as expected. The aussie fell to 0.6301, which signifies a decrease of 0.0061, or 0.97 percent.
NZD/USD (New Zealand Dollar/US Dollar): The New Zealand Dollar also experienced a decline against the U.S. Dollar, closing around 0.5908, down 0.62 percent.
Global Stock Markets Finish Mostly Lower Tuesday; Hong Kong, Japan, France, Germany & Australia all lose more than one percent
In a day marked by tumbling bond markets, and a soaring U.S. dollar, equity markets around the world tumbled with almost across-the-board declines.
Here are the closing quotes from major world centres:
S&P/TSX Composite Index (^GSPTSE): Across the border in Canada, the S&P/TSX Composite Index wrapped up the trading session at 19,020.92, slipping 156.26 points or 0.81 percent. While the decline was less severe compared to its U.S. counterparts, Canadian investors were not immune to the global market headwinds. Trading volume reached 227.11 million shares.
FTSE 100 (UK): The FTSE 100 index started the day at 7,470.16 points but faced a setback, closing at 7,429.60 after a decline of 40.56 points, representing a 0.54 percent drop.
DAX PERFORMANCE-INDEX (Germany): Germany's DAX index also saw a bearish trend, concluding the day at 15,085.21 points after a significant decline of 162.00 points, translating to a 1.06 percent decrease.
CAC 40 (France): The CAC 40 index in France mirrored the downward trend, closing at 6,997.05 points, down 71.11 points or 1.01 percent from its starting value.
ESTX 50 PR.EUR (Eurozone): The ESTX 50 PR.EUR index representing the Eurozone exhibited a downward trend Tuesday, closing at 4,095.59 points after a drop of 42.04 points or 1.02 percent.
Euronext 100 Index (Europe): The Euronext 100 Index also faced a decline, concluding at 1,295.75 points after losing 14.33 points, equivalent to a 1.09 percent decrease.
BEL 20 (Belgium): Belgium's BEL 20 index closed at 3,461.77 points after a decrease of 47.90 points or 1.36 percent.
MOEX Russia Index (Russia): The MOEX Russia Index displayed relative stability, closing at 2,222.51 points with a marginal loss of 4.14 points or 0.19 percent.
Nikkei 225 (Japan): Japan's Nikkei 225 index witnessed a substantial decrease, ending the session at 31,237.94 points after losing 521.94 points, equivalent to a 1.64 percent drop.
HANG SENG INDEX (Hong Kong): Hong Kong's Hang Seng Index recorded a significant drop Tuesday, finishing at 17,331.22 points, down 478.44 points or 2.69 percent.
SSE Composite Index (China): Contrary to the overall trend, the SSE Composite Index in China displayed resilience, closing at 3,110.48 points with a slight gain of 3.16 points or 0.10 percent.
Shenzhen Index (China): The Shenzhen Index also saw a modest increase, closing at 10,109.53 points, up 5.23 points or 0.05 perceny.
STI Index (Singapore): Singapore's STI Index ended at 3,192.35 points after a decline of 16.51 points or 0.51 percent.
S&P BSE SENSEX (India): India's S&P BSE SENSEX index faced a minor setback, ending the day at 65,512.10 points after a drop of 316.30 points or 0.48 percent.
NIFTY 50 (India): India's NIFTY 50 index experienced a drop Tuesday, concluding at 19,528.75 points after losing 109.55 points or 0.56 percent.
IDX COMPOSITE (Indonesia): The IDX COMPOSITE index in Indonesia also faced a minor decline, closing at 6,940.89 points after losing 20.57 points or 0.30 percent.
FTSE Bursa Malaysia KLCI (Malaysia): Malaysia's FTSE Bursa Malaysia KLCI showed a slight increase, closing at 1,420.01 points, up 1.25 points or 0.09 percent.
S&P/NZX 50 INDEX GROSS (New Zealand): The S&P/NZX 50 INDEX GROSS in New Zealand saw a modest decrease, ending the session at 11,235.72 points, down 7.57 points or 0.07 percent.
KOSPI Composite Index (South Korea): South Korea's KOSPI Composite Index displayed a marginal gain Tuesday, closing at 2,465.07 points, up 2.10 points or 0.09 percent.
TSEC weighted index (Taiwan): The TSEC weighted index in Taiwan faced a minor decline, closing at 16,454.34 points after losing 102.97 points or 0.62 percent.
S&P/ASX 200 (Australia): Australia's S&P/ASX 200 index faced a bearish sentiment, concluding at 6,943.40 points after a drop of 89.80 points, representing a 1.28 percent decline.
ALL ORDINARIES (Australia): The ALL ORDINARIES index in Australia witnessed a decline, closing at 7,141.00 points, down 94.50 points or 1.31 percent.
Top 40 USD Net TRI Index (South Africa): The Top 40 USD Net TRI Index in South Africa faced downward pressure Tuesday, ending the day at 3,616.50 points, down 48.37 points or 1.32 percent.
TA-125 (Israel): Israel's TA-125 index exhibited a slight drop, closing at 1,886.56 points, down 16.79 points or 0.88 percent.
EGX 30 Price Return Index (Egypt): The EGX 30 Price Return Index in Egypt faced a significant decline, ending at 19,707.00 points, down 194.20 points or 0.98 percent.