Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Wall Street opens lower as BOJ move tightens conditions again; Dow down

Published 20/12/2022, 15:12
Updated 20/12/2022, 15:12
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened mixed on Tuesday after a surprise move by the Bank of Japan to let market interest rates rise added to the tightening of global financial conditions.

By 10:00 ET (15:00 GMT), the Dow Jones Industrial Average had eked out a gain of 10 points or less than 0.1%, while the S&P 500 was up by a similar amount, and the Nasdaq Composite edged into negative territory.

The moves were in modest volumes, as activity tailed off ahead of the holiday season.

Overnight, the Bank of Japan had said it would allow 10-year government bond yields to rise to as much as 0.5%, from a previous target of 0.25%. The news supported the yen, forcing the unwinding of 'carry trades' that borrow cheap yen to invest in higher-yielding assets such as U.S. Treasuries. Higher bond yields, in turn, weighed on sentiment toward equities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.