Stocks Drop for a Second Day; Yields Stay Elevated: Markets Wrap

The 10-year Treasury yield topped the closely watched 4% level
Sentiment remained fragile after Fed officials stay hawkish

WATCH: Joyce Chang of JPMorgan discusses central banks’ policies, China’s reopening, geopolitical risks and the implications for financial markets. Source: Bloomberg

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By Isabelle Lee, Vildana Hajric, and Angel Adegbesan

February 28, 2023 at 10:52 PM UTC

Updated on

March 1, 2023 at 10:04 PM UTC

This article is for subscribers only.

US stocks dropped for a second straight session as investors revisited their wagers on peak rates after economic data highlighted persistent inflationary pressures and Federal Reserve officials continued to sound hawkish.

The S&P 500 closed the day at its lowest level in nearly six weeks. The Nasdaq 100 dropped to its lowest since January 30. Both indexes had stayed firmly in the red for most of Wednesday’s session after a gauge of manufacturing improved for the first time in six months. Investors balked at a measure of prices paid rising.