US stocks open sharply lower. Yields sharply higher

The major US stock indices are moving sharply to the downside after the stronger than expected core PCE data.

The declines are led by the NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term index which is down about 1.5%. The Dow Industrial Average is down about 1%.

A snapshot of the market currently shows:

• Dow Industrial Average -352.76 points or -1.06% at 32801.16
• S&P index -49.16 points are -1.23% at 3963.17
• NASDAQ index -179.73 points or -1.55% at 11410.57
• Russell 2000-26.73 points or -1.40% at 1881.33

Of course yields are helping the move to the downside is they are up sharply after the PCE data:

• two year yield 4.80% +10.08 basis points
• five year yield 4.218% +11.4 basis points
• 10 year yield 3.955% +7.4 basis points
• 30 year yield 3.918% +4.0 basis points

The high yield in the 10 year reached 3.978% yesterday. Of course, the 4% level will be a key natural resistance hurdle to get to and through.

The 10 year yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term has moved up 62 basis points this month. Recall the month it started with the jobs report which showed stronger-than-expected job gains of 517,000. On that day the tenure yield moved up to 3.55%. Since then, the yield has continued to trend up to 43 basis points as the market adjusted to a Fed that was like in the keep rates steady for longer than expected. It then transitioned into a fed that is likely to raise rates potentially more than expected.