Stocks Dive On Fears Of Hawkish Fed; Treasury Yields Rise, Bitcoin Tumbles To $60,000: What’s Driving Markets Tuesday?
Investor anxiety is palpable on Wall Street as major indices take a hit on Tuesday, with the looming Federal Reserve meeting sparking fears of a hawkish turn. The S&P 500 dipped 0.9%, the Nasdaq 100 fell 1.1%, and small caps saw even larger losses with the iShares Russell 2000 ETF down 1.5%.
Economic data revealing a drop in consumer confidence and ongoing wage pressures added to the market’s woes. The Bureau of Labor Statistics reported a higher-than-expected 1.2% increase in the employment cost index for the first quarter of 2024, while the Conference Board consumer confidence index fell short of forecasts.
Bond yields surged in response to Treasury Secretary Janet Yellen’s deficit concerns, with the 2-year Treasury note breaching the 5% mark. The U.S. dollar index rose 0.6%, putting pressure on gold and causing Bitcoin to plummet over 5%.
In terms of stock performance, Tesla Inc. saw a 5% drop following a previous surge, while Eli Lilly Company rose 4.6% on a positive revenue forecast. Other notable movers included Coca-Cola, McDonald’s, and Caterpillar, among others.
The market’s reaction to the Federal Reserve meeting and ongoing economic concerns will continue to drive investor sentiment in the coming days. Stay tuned for more updates on this developing story.