Dow Jones Futures Decline as Treasury Yields Surge Towards 5% and Speaker McCarthy is Ousted.


In a continued surge, Treasury yields have caused Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, to fall overnight. The House voted to remove Speaker Kevin McCarthy, potentially creating further political turmoil. The stock market also saw a sell-off as job openings increased, leading to a rise in Treasury yields. Ray Dalio, alongside investor Bill Ackman and Blackrock CEO Larry Fink, has predicted that the 10-year Treasury yield could soon reach 5%. Additionally, concerns regarding political dysfunction in Congress are also unnerving investors.

As Treasury yields continue to rise, the stock market experienced a sell-off, resulting in the Dow Jones falling 431 points and now being negative for the year. The S&P 500 also undercut its September 27 low, and its market rally attempt has come to an end. The Nasdaq rally attempt is still holding on, but market breadth remains dismal. Several leading stock performers, including Nvidia, Celsius Holdings, Booking Holdings, Super Micro Computer, and Palantir Technologies, hit resistance at the 50-day line. Nvidia stock has been less affected, while the other mentioned stocks have experienced more technical damage. The market appears to be in a correction phase, with major indexes and leading stocks looking unfavorable.

Dow Jones futures fell 0.2% overnight, while S&P 500 futures and Nasdaq 100 futures dropped 0.3%. The 10-year Treasury yield increased to 4.85%. There are concerns that the upward trajectory of the Treasury yield will lead to consequences such as bank failures. Speaker Kevin McCarthy was ousted by the House, raising risks of political instability and potentially causing a government shutdown in mid-November. In the stock market, the Dow Jones, S&P 500, and Nasdaq plummeted, with the Nasdaq reaching its lowest point in four months. To halt the slide, the 10-year Treasury bond yield would need to decline.

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