Rising U.S. treasury yield hammers stocks
The 10-year U.S. Treasury yield jumped Tuesday to 1.54%, its highest level since June. Stocks sold off with tech bearing the brunt. On Wall Street, the S&P closed -2.04%, the Dow -1.63% and the Nasdaq -2.83%. Selling hit all sectors, though energy suffered the least.
Notable movers: Boeing at -2.61%, Goldman Sachs -2.63%, Adobe -4.12%, Microsoft -3.62% and Apple -2.34%. One of the few gainers was weed stock Aurora up 7.05%. The rising yield actually reflects expectations for a strengthening economy, but triggers a rotation out of long-duration growth stocks which are valued on future earnings. Also, fund managers are booking profits before Q3 ends. All of this plays into September seasonality.
More weighted in oil, the TSX declined only 1.41% though tech plunged 3.66%. Energy still had a mixed day as Baytex rallied 2.34%, but TC Energy sank 3.56%. Elsewhere, Hexo sank 5.43% and Air Canada dove 2.55%. The big news on Bay Street was the merger of Agnico Eagle and Kirkland Lake which closed -1.22% and -7.76% respectively. Crude oil lost only a little ground as WTi slipped 0.83% to $just below $75 a barrel and WCS retreated 0.42% to $63 and change. Meanwhile, gold lost 1% and Bitcoin shed 3.5% to $41,500.
🛫 Boeing -2.61%
🏛 Goldman Sachs -2.63%
💾 Adobe Systems -4.12%
Ⓜ Microsoft -3.62%
🍎 Apple -2.34%
🌿 Aurora Cannabis +7.05%
🛢 Baytex Energy Corp +2.34%
🛢 TC Energy -3.56%
🌿 Hexo Corp -5.43%
✈ Air Canada -2.55%
⛏ Agnico-Eagle Mines -1.22%
🥇 Kirkland Lake Gold -7.76%
🅱 The Bitcoin Fund -3.5%
