The Dow Jones Industrial Average sold off in today's stock market and fell around 600 points as interest rates continued to run higher. The Nasdaq composite led the indexes on the downside and fell more than 2% in early afternoon trading. The S&P 500 also moved lower.
Dow Jones In The Stock Market Today
At around 1:30 p.m. ET, the Dow Jones industrials were trading down 1.7%, or around 600 points. The Nasdaq composite was down 2.4%. The S&P 500 declined 1.9%, while the Russell 2000 small-cap index fell 2.8%. Volume was running higher on the Nasdaq and on the NYSE vs. the same time on Friday.
The yield on the benchmark 10-year Treasury note rose 9 basis points to 1.86%, the highest level since the start of the pandemic. As the Federal Reserve aggressively moves to counteract the surge in inflation, investors have started selling bonds, which consequently pushes yields higher.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35315.75 | -596.06 | -1.66 |
| S&P 500 | (0S&P5) | 4573.57 | -89.28 | -1.91 |
| Nasdaq | (0NDQC ) | 14536.78 | -356.97 | -2.40 |
| Russell 2000 | 208.32 | -5.99 | -2.80 | |
| IBD 50 | 40.80 | -1.64 | -3.86 | |
Last Update: 1:36 PM ET 1/18/2022 |
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The rise in yields has hindered the majority of stocks with high price-to-earnings ratios and any companies that rely on debt. As such, many technology and growth stocks have struggled.
Technology Select Sector SPDR fell 2.2%, while the growth-focused Innovator IBD 50 ETF sold off 3.8%. Elsewhere, Financial Select Sector SPDR fell 2.6% and is now back below a 40.96 buy point it cleared Jan. 7.
The Dow Jones was hindered by heavy declines in bank stocks JPMorgan and Goldman Sachs, which fell 4% and 7%, respectively.
Goldman Sachs was the latest among major bank stocks to sell off on earnings. Shares undercut the 200-day moving average and reached the lowest price since June. Goldman Sachs stock also undercut the low of its recent flat base with a 426.26 entry. The investment bank missed fourth-quarter profit expectations but exceeded sales estimates.
Charles Schwab also reported disappointing earnings and declined 5.7% in afternoon trading. The stock is still extended from the 84.59 buy point of a flat base. Shares are also still above their 21-day line.
Breakouts Galore For Oil Stocks
Despite the market plunge on Tuesday, the MarketSmith Growth 250 index still hosted a handful of breakouts. The majority of stocks on the list were related to the energy sector, as oil and gas stocks continue higher on rising U.S. crude oil prices.
The price of U.S. crude rose 1.2%, close to $85 a barrel. The commodity topped its highest levels since October 2014. Global oil prices are rising on geopolitical tensions in major oil producers, namely Russia and United Arab Emirates.
Occidental Petroleum briefly moved above a cup-base buy point of 35.85, but shares faded in afternoon trading. The stock fell 1% in early afternoon trading. Elsewhere, Royal Dutch Shell rose above a 50.54 buy point of a cup base. Shares also dipped below the entry in afternoon trading. But the stock's RS line reached a new high alongside the breakout, which is a good sign.
Cactus, an oil and gas equipment manufacturer, rose above the 47.04 buy point of another cup base in heavy trading. Meanwhile, Matador Resources also broke out past a 47.33 entry but faded to a 2.4% loss.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
