NEW YORK, Oct 20 — Wall Street stocks retreated Wednesday, snapping a two-day rally as the latest jump in treasury yields exacerbated recession worries, offsetting generally good earnings.
The yield on the 10-year US Treasury note, a proxy for Federal Reserve interest rates, jumped above four per cent following a gloomy inflation report from Britain.
“There’s nothing to suggest that inflation is going to move in the right direction,” said Tom Cahill of Ventura Wealth Management.
A downcast Federal Reserve “Beige Book” report observed rising recession fears as households grapple with soaring costs and earlier Fed interest rate hikes slowing demand.
The Dow Jones Industrial Average finished down 0.3 per cent at 30,423.81.
The broad-based S&P 500 shed 0.7 per cent to 3,695.19, while the tech-rich Nasdaq Composite Index dropped 0.9 per cent to 10,680.51.
Among individual companies, Netflix surged 13.1 per cent as it reported gaining more than two million subscribers in the recent quarter, calming investor fears that the streaming giant was losing paying customers.
Shares of the company have also been bolstered by an announcement of a new ad-supported “basic” streaming service at a lower price point.
Procter & Gamble gained 0.9 per cent after reporting better-than-expected profits, even as it lowered its full-year sales forecast due to the strong dollar.
United Airlines jumped 5.0 per cent as it reported strong quarterly results and offered a bullish outlook on travel demand despite headwinds in the broader economy. — AFP
