Final Hour Sparks Another Wave of Selling on Wall Street, Bond Yields Rise

Barry Adams
15 Sep, 2022
New York City

Stocks on Wall Street lacked direction and struggled to stay above the flat-line and accelerated declines in the final hour of trading.

Benchmark indexes fell more than 1% as investors digest conflicting trends in the economy. 

Economy is slowing down as the housing market faces surging mortgage rates but labor market conditions remain tight and consumer spending is holding up despite high inflation. 

However, global markets remain defensive as nervous investors digest the implications of higher rates and economic slowdown. 

Economic slowdown worries spilled over energy markets and crude oil prices eased in New York and in European trading. 

Weakening economic backdrop and stubborn inflation has also lifted bond yields around the world. 

The S&P 500 index fell 1.1% to 3,901.35 and the Nasdaq Composite index declined 1.4% to 11,552.37. 

Oil complex traded lower after energy prices eased from one-week highs. 

 

Bond Market Route Continues 

The yield on 10-year U.S. Treasury bonds are above 3.45% and approaching the peak of 3.5% reached in June, 2-year notes are now at 3.86%, a 15-year high and  30-year bond at 3.47%. 

In addition, the bond yields in Germany are at 1.7%, a 8-year high, as the deepening energy crisis shows no sign of easing. Yields in Greece and Italy are above 4%, prompting worries of another sovereign debt crisis in the eurozone. 

 

Crude Oil Searches Bottom

Global market sentiment has been weakening on the extended coronavirus lockdowns and housing market problems in China, natural gas crisis in Europe, and escalating interest rates in the U.S. 

Moreover, shifting of Russia's oil supply to Asia and a conflict between Armenia and Azerbaijan has kept the supply worries in front and center. 

WTI crude oil price declined $3.30 to $86.12 a barrel and Brent crude price declined $3.30 to $90.31. 

Natural gas price dropped 81 cents to $8.29 a thermal unit and the TTF gas price in Europe fell 1.6% to