Wall Street stocks fell as markets processed a gloomy OECD outlook and rising Treasury bond yields.
US stocks dip: The Organisation for Economic Co-operation and Development increased its growth forecast for 2023 but decreased its 2024 growth expectation from 2.9 percent to 2.7 percent.
The OECD listed a number of factors, including China’s weak economic performance and the negative impact of rising interest rates as a result of central banks’ initiatives to fight inflation.
The Dow Jones Industrial Average was down 0.2 percent at 34,567.96 after about 20 minutes of trading.
The tech-heavy Nasdaq Composite Index fell 0.5 percent to 13,644.64, while the broad-based S&P 500 fell 0.2 percent to 4,443.77.
As markets anticipated the Federal Reserve’s interest rate decision on Wednesday, the yield on the 10-year US Treasury note increased.
The market’s recent “sideways” movement, according to Adam Sarhan of 50 Park Investments, is “very bullish,” given that Treasury yields have gone up alongside oil prices.
You have a lot of macro headwinds, which would typically drive stock prices far lower, according to Sarhan. “All other things being equal, that’s bullish” when the market can’t decline despite varied news.