U.S. stocks moved lower on Thursday, as a global rally in bonds continued, sparked by worries about global growth and the European Central Bank’s commencement of its corporate bond buying program. Newslook
The S&P 500, haunted by angst over weak global growth and a steep drop in government bond yields as some investors look for safer investments, is down Thursday after a three-day assault on an all-time high that failed to result in a new record.
After coming within 10 points of a record Wednesday, in midday trading the Standard & Poor’s 500 was down about 10 points, or 0.5% to 2109, still below its May 2015 record high of 2130.82. The Dow Jones industrial average fell 77 points, or 0.4% and is back below the 18,000 level. The Nasdaq composite dropped 0.5%.
n a sign of rising angst among investors, the 10-year Treasury note yield in the U.S. at 1.67% Thursday fell to its lowest levels since the stock market lows back in February. And the 10-year government bond in Germany hit a fresh record low yield of 0.034% earlier in the session. The drop in bond yields is signaling that some investors are concerned about the ongoing weakness in the global economy.
Also weighing on stocks is a rise in the value of the U.S. dollar, which is putting pressure on commodities, such as oil. U.S.-produced crude fell nearly 1% to $50.76 per barrel. U.S. oil topped $51 a barrel yesterday, which marked an eleven-month high.
Stocks were lower in Europe, with the broad Stoxx Europe 600 was off about 1%.