Stocks Pressured by Higher Bond Yields and Chip Stock Weakness

The S&P 500 Index ($SPX) (SPY) is down up by -0.06%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.38%.  December E-mini S&P futures (ESZ25) are down -0.12%, and December E-mini Nasdaq futures (NQZ25) are down -0.39%.

Stock indexes are under pressure today amid higher bond yields, with the 10-year T-note yield up +2 bp to 4.08%.  Today’s decline in initial jobless claims to a 3-year low was hawkish for Fed policy and pushed T-note yields higher.  Also, a Reuters report today said the BOJ is likely to raise interest rates this month and that the government would tolerate the move, pushing Japan JGB yields to an 18-year high and undercutting T-note prices.  In addition, weakness in chip makers is weighing on the broader equity market.