Economic news

U.S. stocks slip at open amid lingering concerns over higher bond yields

Wall Street declined in morning deals on Tuesday, dragged down by rising yields and after the International Monetary Fund downgraded its global growth outlook, accusing the Sino-U.S. trade dispute in distinct terms.

Photo: Reuters

The Dow Jones Industrial Average sank 0.07 percent, to 26,469.19. The S&P 500 was down 0.07 percent, at 2,882.51 and the Nasdaq Composite slid 0.10 percent, to 7,728.51.

The broad-market S&P was on course to continue its disappointing streak to four days, briefly sliding below its 50-day moving average in the previous session.

Rising yields have hurt appetite for risk assets as traders assessed the consequences of rising borrowing costs on business.

The yield on the U.S. 10-year Treasury note edged up 1.4 basis points to 3.24 percent on Tuesday, touching its strongest level since 2011.

The latest developments on trade policy of major economies, as well as political risks in Europe due to Italy’s budget plans and comments from multiple U.S. central bank speakers, were also in focus.

On Monday, the International Monetary Fund downgraded its global growth outlook for this year and 2019 to 3.7 percent, which for both years is 0.2 percent below its previous prediction in July. This shows weaker growth in developed economies, rising trade worries and higher crude prices.

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