Market Recap – October 18th
On Wednesday’s trading day, markets slumped again following major moves made in the bond market. For the first time since 2007, the yield on the 10-year U.S. Treasury reached over 4.9% as robust economic data have assumed strong monetary policy by the Federal Reserve. The rise in Treasury yields also sent rates higher, with the average 30-year fixed-rate mortgage reaching over 8% for the first time since 2000. For the main indices, the S&P 500 dropped 1.34%, the NASDAQ Composite went down 1.62%, and the Dow Jones fell 0.98%. Also in the red was American carrier United Airlines, with its stock falling 9.67% after reporting guidance that was weaker than expected from issues with rising fuel costs and halted flights to Israel. Financial institution Morgan Stanley also lost at the bell, with its share price falling the deepest since 2020 at a 6.78% loss. The firm had released its earnings that although beat on both top and bottom lines, posted numbers for its wealth management division that were far lower than estimates.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.