Stocks Fall as Tech Investors Worry About China and Rising Bond Yields Bite

Source: The New York Times



By Matt Phillips

Oct. 10, 2018

Stocks suffered their steepest drop in eight months on Wednesday, as investors continued to digest rising interest rates and previously high-flying tech shares tumbled amid growing tensions with China.

The Standard & Poor’s 500-stock index dropped 3.3 percent, bringing the broad equity benchmark down 4.4 percent for the month. The yield on the 10-year Treasury note, a key measure of borrowing costs, inched up to more than 3.24 percent during the trading day before declining.

Wednesday’s tumble marked the fifth-consecutive daily decline for the S. & P. 500, the longest string of down days since November 2016, according to research from Bespoke Investment Group. And the day’s drop was the sharpest since a market sell-off in February.

Then, like now, concerns about nascent inflation, rising interest rates and the potential for the Federal Reserve to tighten monetary policy drove the selling.

Read more: https://www.nytimes.com/2018/10/10/business/stock-market-tumbles-yields-rise.html