Stocks struggled and Treasury yields traded near 16-year high as investors shift focus to macroeconomic headwinds from rising rates and its impact on the banking sector.
Tech stock buyers returned to drive major averages higher despite the 10-year Treasury bonds trading at 16-year high. Investors set aside worries of rising bond yields and a potential interest rate hike and snapped up popular mega-cap tech stocks.
A rebound in tech stocks lifted broader market averages on Wall Street and the yield on 10-year Treasury bonds jumped to the level last seen since 2007.
Another leg up in Treasury yields dented market sentiment and dragged market averages lower as the sentiment shifted in favor of rate-hike from rate-pause after the release of Fed's policy meeting minutes.
Stocks accelerated declines in the final hour of trading after banks fell as much as 3% on the worries of a possible downgrade from another rating agency. World markets remained depressed after China reported several economic indicators suggesting uneven and weakening recovery.
Market averages turned lower on global economic growth worries. Sales at retail stores, online and restaurants rose for the fourth month in a row in July but sales at gasoline stations plunged from a year earlier.
Popular averages closed higher and tech stocks rebounded after a selloff in the last two weeks. Global markets were on the defensive after China property market woes worsened and the ruble, the yen and Argentine peso weakened.
Market averages were in a holding pattern and investors awaited retail sales data and about 300 companies are scheduled to release earnings including Target, Walmart and Cisco.
Market averages eased on Friday and indexes are set to close down for the second week in a row after banks faced selling pressure, semiconductor stocks lost momentum and energy stocks rebounded.
Investors turned cautious in midday after the weakening inflation report failed to spark further gains on the worries that the Federal Reserve is more likely to continue its aggressive rate hike campaign.
Stock and bond market reacted positively to the latest inflation report which showed a slight acceleration in overall inflation but core inflation edged lower in July.
Market averages attempted a rebound and Treasury yields were stable ahead of inflation data Thursday. Commodities traded volatile after China reported deflation for the first time in more than two years.
Market averages sold off for the second day in a row after regional bank worries resurfaced. Bond yields around the world eased after China's exports and imports declined in double digits in July.
