March 18 Reuters Wall Street ended sharply lower on Thursday, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe.
Losses in U.S. stocks accelerated after Frances prime minister imposed a monthlong lockdown on Paris and several other regions due to the health crisis.
The SP 500 energy sector index tumbled as oil prices fell, in part due to worries about rising COVID19 cases in Europe.
That last hit was from news of the Paris lockdown. It wasnt received that well, said Joe Saluzzi, comanager of trading at Themis Trading in Chatham, New Jersey. Here in the United States, we anticipate this big reopening and the virus is looking good, but we are not looking outside of the U.S., and its not all good.
The Russell 1000 value index, which is heavily comprised of cyclical stocks such as financials and energy, ended lower, while the Russell 1000 growth index, which includes technology stocks, dropped more than 1.
The yield on the benchmark 10year Treasuries crossed 1.75 to hit a 14month high a day after the Fed projected the strongest growth in nearly 40 years as the COVID19 crisis winds down. The Fed also repeated its pledge to keep its target interest rate near zero for years to come. .
The Fed just saying they are not going to raise rates until 2023 really means nothing, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. The Fed is on the sidelines, but if bond yields keep going up, that is what really…