December 8, 2013
Wall Street rebounds as US bond yields fall from 2-year peaks
In the absence of major economic news recently, equity trading has been linked to US Treasuries, whose rising yields have kept stock gains in check. The yield on the benchmark 10-year note dipped to 2.83 percent today after hitting 2.88 percent yesterday, a two-year high.
The Dow Jones industrial average closed down 7.75 points, or 0.05 percent, at 15,002.99. The Standard & Poor's 500 Index finished up 6.29 points, or 0.38 percent, at 1,652.35. The Nasdaq Composite Index ended up 24.50 points, or 0.68 percent, at 3,613.59.
European shares hit a three-week low and a major volatility index spiked higher, as expectations hardened that the US Federal Reserve will start to scale back monetary stimulus measures next month.
The pan-European FTSEurofirst 300 index fell 1.4 percent to 1,207.89 points in afternoon trade, marking the index's lowest point in August, led lower by a 2.3 percent drop in banks.Japan's Nikkei average tumbled as concerns also about the US Federal Reserve's plans to reduce its stimulus hammered companies heavily exposed to emerging markets such as Suzuki Motor Corp and Hino Motors Corp.
The benchmark Nikkei fell 2.6 percent to 13,396.38, the biggest drop in two weeks, with traders citing an unwinding of hedge funds' cash positions in emerging markets as well as other risky assets such as Nikkei futures. The index touched 13,383.18, the lowest since June 28.
The broader Topix shed 2.1 percent to 1,125.27.