Stocks finished firmly lower Wednesday. The Dow fell 831 points to 25598 while the S&P 500 lost 94 points to 2785, capping its first five-session losing streak since 2016. The Nasdaq Composite slipped 315 points to 7422.
The Dow and S&P 500 each had their worst session in more than six months as investors gauged rising interest rates and the continued rout in Tech shares. The CBOE Volatility Index (VIX) hit its highest level since April as hurricane Michael heads towards the U.S. gulf coast. Technology shares retreated 4.7%, bringing the group’s five-day slump to 8.4% as global trade concerns and rising bond yields have seemingly sparked a sector rotation. Advanced Micro Devices fell 8.2% to $25.00 while Microsoft slid 5.4% to $106.16.
All 11 S&P 500 finished lower with eight of the sectors losing more than 2%. In addition to the Tech sell-off, Energy shares were off 3.6% in sympathy with a 2.8% loss to $72.83/barrel for WTI crude. Industrials also retreated, with Fastenal shares slumping 7.1% to $51.67 as the company cited higher input costs in lowering its forward guidance. Amazon weighed down the Consumer Discretionary sector with a 6.2% decline to $1755.25, leaving the eCommerce giant down 13% from its September high.
Breadth was negative on issues by 9:1 on both the NYSE and the Nasdaq. S&P 500 trading volume was nearly 40% above its 30-day average.
The yield on the 10-year Treasury note finished down one basis point to 3.19%. The yield briefly hit 3.24% this morning after a report showed that producer price inflation rebounded in September, but bonds rallied as the equity sell-off deepened.