NEW YORK: Wall Street stocks dipped early Tuesday as markets digested a lackluster OECD forecast and Treasury bond yields pushed higher.
While lifting its growth projection for 2023, the Organisation for Economic Co-operation and Development trimmed its 2024 growth expectation to 2.7 percent from 2.9 percent in a previous forecast.
Factors cited by the OECD included disappointing activity in China and the drag from higher interest rates, following central bank actions to counter inflation.
Wall Street ends sharply lower as chipmakers slide
About 20 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 34,567.96.
The broad-based S&P 500 dipped 0.2 percent to 4,443.77, while the tech-rich Nasdaq Composite Index declined 0.5 percent to 13,644.64.
The yield on the 10-year US Treasury note climbed as markets awaited Wednesday’s Federal Reserve interest rate decision.
Adam Sarhan of 50 Park Investments said the market’s “sideways” action in recent weeks is “very bullish,” considering that Treasury yields have increased along with oil prices.
“You have a lot of macro headwinds, that would normally send stocks down and down in a very big way,” Sarhan said. “When the market can’t fall on various news, all things being equal that’s bullish.”
Comments
Comments are closed for this article.