fell more than 600 points, or 1.8%, in midday trading on Tuesday, a day after stocks closed their second consecutive monthly decline to start the year. the Nasdaq
were also lower, albeit more modestly, dropping 1.4% and 1.5% respectively.
Rising oil prices, which climbed 10% on Tuesday to above $105 a barrel for the first time in more than seven years, are hurting sentiment. So is the rapid fall in long-term bond yields
. The 10-year Treasury rate fell to around 1.7%, its lowest level since early January.
Falling bond rates are bad news for financial companies, which tend to make more money from lending and other activities when rates are higher. American Express (AXP)
, JPMorgan Chase (JPM)
and Goldman Sachs (GS)
were among the Dow’s biggest losers on Tuesday.
Investors are now betting that rates will also stay quite low for some time. According to CME futures
traders are even banking on an 8% chance that the Federal Reserve will keep rates at zero at its next meeting on March 16.
The Fed is still expected to hike rates, but now by only a quarter point. A week ago, the market was torn between whether the Fed would hike rates by a quarter point or half a point.
Fed Chairman Jerome Powell may talk more about the direction rates are heading in his semiannual testimony to Congress this week. He speaks before the House Committee on Financial Services on Wednesday and the Senate Banking Committee on Thursday.
was the Dow’s biggest gain on Tuesday, up 3%. The energy giant is benefiting from rising oil prices and the company has also raised its share buyback
target this year.
Retail stocks were also among the market gainers on Tuesday. Target and Kohl’s both announced higher-than-expected earnings and strong prospects for 2022. Target (TGT)
shares jumped 12% on the news.
the stock was up 2% and Dow components walmart (WMT)
and Home deposit (High Definition)