Stock market news for May 29, 2024

Shares slid Wednesday as strain from rising Treasury yields outweighed a continued rally in synthetic intelligence darling Nvidia.

The Dow Jones Industrial Common fell 411.32 factors, or 1.06%, to 38,441.54. The S&P 500 dipped 0.74% to five,266.95, marking its first destructive session of the final three. The Nasdaq Composite slipped 0.58% to 16,920.58, as Nvidia’s advance considerably mitigated losses for the technology-heavy index.

Nvidia climbed 0.8%, reversing an early lack of 2.6%. The megacap tech title has risen each buying and selling session since issuing its blockbuster earnings report final Wednesday. Since then, the inventory has surged roughly 21%.

All 11 sectors that comprise the broad S&P 500 retreated, underscoring the breadth of market weak spot. Greater than 440 shares within the index have been decrease on the day.

In all, 27 of the 30 shares within the Dow fell. Insurance coverage supplier UnitedHealth led the blue-chip common decrease with a slide of greater than 3% following administration commentary round its Medicaid enterprise. Different shares tied to the federal medical health insurance program dropped, together with Molina Healthcare, Humana and Elevance Well being.

Wednesday’s transfer decrease comes because the 10-year Treasury be aware yield ticked increased for a second day, final buying and selling above 4.6%. The benchmark yield popped to troublesome ranges for inventory traders following a Treasury Division public sale on Tuesday that was met with weak demand. Greater yields can decrease the multiples traders are prepared to pay for shares, drive up borrowing prices, damage client spending and make T-bills and cash market funds extra engaging.

“As we speak is basically all about rates of interest,” mentioned Adam Turnquist, chief technical strategist at LPL Monetary, including that the 10-year and 2-year yields have touched “uncomfortable ranges.” “That every one is creating some angst amongst traders.”

Whereas there was a uneven begin to the shortened week, the most important averages are on monitor to shut the month with notable good points. The S&P 500 is up 4.6% in Could, whereas the Dow has superior about 1.7%. The Nasdaq has climbed greater than 8% this month.

The advances arrive at the same time as merchants have lowered their expectations for Federal Reserve fee cuts. Certainly, fed funds futures buying and selling knowledge suggests an almost 54% probability that charges will maintain regular in September, based on the CME FedWatch Instrument.

Traders are asking: “What’s the summer season going to ship? And is the macro atmosphere actually altering?” mentioned Shelby McFaddin, funding analyst at Motley Idiot Asset Administration. “The 12 months is transferring rapidly. And a number of the issues that have been anticipated to occur, the likelihood of them taking place is reducing.”