The S&P 500 Index ($SPX) (SPY) today is down by -0.44%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.35%.
Stocks today are moderately lower as a jump in global bond yields undercuts equity prices. The 10-year T-note yield rose to a 2-3/4 month high today, the 10-year German bund yield climbed to a 7-week high, and the 10-year Japanese JGB yield rose to a 2-1/2 month high. An increase in US bond yields is leading global yields higher on expectations for a slower pace of Fed rate cuts. Also, the US bond market is pricing in the possibility that whoever wins the US presidential election next month, there will be a sharp increase in fiscal spending that will prompt the Treasury to boost the supply of government debt securities to finance the soaring budget deficit.
