Major US equity indices extended a multiday decline and witnessed a yet another weaker opening on Thursday, albeit quickly recovered early losses.
Today’s slide comes after yesterday brutal sell-off, indicating that investors remain concerned over the recent upsurge in the US Treasury bond yields and the impact it could have on equity prices.
Meanwhile, the US President Donald Trump stepped up his criticism over the pace of Fed rate hikes and blamed the central bank’s aggressive monetary tightening for the weakness in stock markets.
Adding to this, fear of slowing global growth, fueled by continuing US-China trade tensions have also been cited as one of the key factors behind the equity market’s meltdown over the past few trading session.
However, indications of easing inflationary pressure dampened market expectations for a more aggressive pace of interest rate hikes by the Fed. The same was evident from the ongoing slide in the US Treasury bond yields and might help limit deeper losses, at least for the time being.
At the time of writing this report, the Dow Jones Industrial Average was up by over 50-points to 25,655 and the broader S&P 500 Index climbed around 15-points to 2,796. Meanwhile, tech-heavy Nasdaq Composite Index outperformed the markets and rallied nearly 70-points to 7,493.