U.S. markets were hit for heavy losses on Thursday following the surge in government bond yields. The yield on 10-year Treasury note, a bellwether for risk sentiment around the world, jumped to 3.188% Thursday. This was up from 3.159% on Wednesday, and represents the 10-year T-note’s highest level since July 2011.
Bond prices fell as yields rose with the major indexes all falling more than 1%. Volatility surged to its highest peak since mid-August after closing above key levels of resistance.
The Nasdaq tanked 1.8% after bottoming at 7,833 late in the session. August and upper support at 7,825-7,750 held on the close back below the 50-day moving average.
The Russell 2000 sank 1.5% following the pullback to 1,643. Upper June support at 1,640-1,630 held with a move below the latter being a continued bearish development.
The Dow dropped 0.8% after fading to a low of 26,471 intraday. Prior support at 26,400-26,350 held with a close below the latter likely leading to 26,200-26,000.
The S&P 500 sank 0.8% following the backtest to 2,883 late in the session. Upper support at 2,875-2,850 and the 50-day moving average held with a close below the latter being a continuing bearish development.
Utilities and Financials were the only sectors to show strength after climbing 0.8% and 0.6%, respectively.
Technology and Consumer Discretionary led sector weakness after sinking 1.8% and 1.5%. Communication Services and Health Care fell 1.4% and 1%.
Cloudera (CLDR) upgraded to Buy from Neutral at DA Davidson and Nomura Instinct
National Storage (NSA) upgraded to Buy from Hold at Jefferies
Washington Trust (WASH) upgraded to Buy from Hold at Sandler O’Neill
AMC Networks (AMCX) downgraded to Sell from Neutral at Goldman Sachs
Ameresco (AMRC) downgraded to Neutral from Buy at Roth Capital
Corporate Capital (CCT) downgraded to Market Perform from Outperform at Wells Fargo
Friday’s earnings announcements (EST):
No major announcements
UPCOMING ECONOMIC NEWS
Jobs Report – 8:30am
International Trade in Goods – 8:30am
Baker-Hughes Rig Count – 1:00pm
METALS / OIL
Gold closed at $1,201.60 an ounce, down $1.30
Silver settled at $14.59 an ounce, down $0.08
Copper finished at $2.78 a pound, down $0.05
Crude Oil is at $74.57 a barrel, down $1.84
Bitcoin Investment Trust (GBTC) ended at $7.46 up $0.10
I hope this helps you prepare for tomorrow. Have a great evening.