Investing.com – Wall Street closed lower on Wednesday after Treasury yields soared to four-year highs weakening investor appetite to buy the dips in equity markets despite optimism on the economy and corporate earnings.
The Dow Jones Industrial Average closed lower at 24,893.35 The S&P 500 closed 0.59% lower, while the Nasdaq Composite closed at 7051.98, down 0.90%.
The United States 10-Year rose over 2% nearly matching Monday’s high of 2.885%, the level that triggered a record drop in the Dow Jones, pressuring investors to abandon their bullish intraday bets on stocks.
The rise in bond yields came amid confirmation of the government budget deal and a somewhat subdued 10-year auction as demand was light with the bid-to-cover ratio at 2.34 versus a previous 2.69, representing the lowest demand since September.
Senate leaders reached a $300 billion two-year budget deal, easing investor uncertainty, averting a government shutdown just a day before a stopgap funding measure was slated to expire.
Offsetting fears over rising bonds yields, somewhat, was mostly update corporate earnings as Snap Inc (NYSE:SNAP) delivered a blowout earnings report to close more than 40% higher, while Walt Disney Company (NYSE:DIS) beat earnings but missed revenue expectations.
Energy proved to be the main headwind, weighing on the overall market as WTI crude oil prices tumbled 2.5% amid an uptick in both US supplies and output.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Boeing (NYSE:BA) rose 2.1%, Walmart (NYSE:WMT) up 1.9%, and United Technologies (NYSE:UTX) up 1.7%.
Apple (NASDAQ:AAPL) down 2.1%, Microsoft (NASDAQ:MSFT) down 1.9%, and Exxon Mobil Corporation (NYSE:XOM) down 1.8%, were among the worst Dow performers of the session