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Treasury Yields Rise, Tesla Jumps On Cheaper Model Pledge, Yen Plummets To 34-Year Lows: What's Driving Markets Wednesday?

Published 24/04/2024, 18:40
© Reuters.  Treasury Yields Rise, Tesla Jumps On Cheaper Model Pledge, Yen Plummets To 34-Year Lows: What's Driving Markets Wednesday?

Benzinga - Rising Treasury yields have investors cautious despite positive news from the earnings season.

The yield on the long-dated 30-year Treasury bond has surged to 4.79%. It’s on track to close at the highest level since early November, ahead of crucial economic data on Thursday.

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) fell 0.9%, extending its year-to-date drop to 10%.

Rising yields are propelling the greenback higher, particularly against the low-yielding Japanese yen which tumbled to past 155 per dollar, hitting the lowest level since June 1990.

Tesla Inc. posted lower-than-expected results last quarter, but shares rose 10%. Investors reacted to the automaker’s pledge to produce more affordable models to broaden the market.

The S&P 500 fell 0.4% by midday trading in New York; the tech-heavy Nasdaq 100 managed to hold steady; and small caps saw wider declines, with the iShares Russell 2000 ETF (NYSE:IWM) down 1%.

Gold remains unchanged, while oil prices edged up by 0.5%, despite the Energy Information Administration revealing a 6.368 million barrel drop in crude oil inventories last week, significantly below market expectations of a 1.6 million barrel increase.

Bitcoin (CRYPTO: BTC) fell 2.7% to $64,500 amid waning sentiment towards riskier assets.

Wednesday’s Performance In Major US Indices, ETFs

Major Indices Price 1-day %chg
Nasdaq 100 17,470.46 0.0%
Dow Jones 38,334.54 -0.4%
S&P 500 5,048.09 -0.4%
Russell 2000 1,983.56 -1.0%

Updated at 12:35 p.m. EDT

The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.5% to $503.45, the SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.4% to $383.43 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) inched 0.1% lower to $424.43, according to Benzinga Pro data.

Sector-wise, the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 0.3%. The Industrials Select Sector SPDR Fund (NYSE:XLI) was the major laggard, down 1.5%.

Wednesday’s Stock Movers

  • Texas Instruments Inc. (NASDAQ:TXN) rose 6.5%, after beating both earnings and revenue estimates last quarter.
  • Other companies reacting to earnings were Steel Dynamics, Inc. (NASDAQ:STLD) (down 2.5%), Mattel, Inc. (NASDAQ:MAT) (up 3.6%), Baker Hughes Company (NASDAQ:BKR) (down nearly 2%), Chubb Ltd. (NYSE:CB), (down over 3%), Old Dominion Freight Line, Inc. (NASDAQ:ODFL) (down over 10%), Norfolk Southern Corporation (NYSE:NSC) (down 5%), Boston Scientific Corporation (NYSE:BSX) (up over 6%), AT&T Corp. (NYSE:T) (up 1.8%), Boeing Co. (NYSE:BA) (down 1.6%), CME Group Inc. (NASDAQ:CME) (down 1.4%), General Dynamics Corp. (NYSE:GD) (down 3.2%) and Hilton Worldwide Holdings Inc. (NYSE:HLT) (up 4.3%).
  • Notable names reporting after the close are Whirlpool Corporation (NYSE:WHR), Western Union Company (NYSE:WU), ServiceNow, Inc. (NYSE:NOW), QuantumScape Corporation (NYSE:QS), O’Reilly Automotive, Inc. (NASDAQ:ORLY), Meta Platforms, Meritage Homes Corporation (NYSE:MTH), Lam Research Corp. (NASDAQ:LRCX), Knight-Swift Transportation Holdings Inc. (NYSE:KNX), International Business Machines Corp. (NYSE:IBM), Ford Motor Co. (NYSE:F) and Chipotle Mexican Grill, Inc. (NYSE:CMG).

Now Read: Treasury Yields Reach 5-Month High, Lift Mortgage Rates; Expert Warns ‘Federal Debt Blob Is Out Of Control’

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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