Stocks Retreat In U.S. And International Markets

Submitted by News Desk on

U.S. stocks fell Wednesday, dragged lower by broad losses across everything from shares in airlines to technology stocks.

The S&P 500 dropped about 1.2%. The tech-focused Nasdaq Composite Index also fell 1.2%, while the Dow Jones Industrial Average lost 450 points, or about 1.3%.

Stock trading has been bumpy lately as investors have grappled with soaring energy prices and a general shift higher in government bond yields.

Higher oil-and-gas prices have the potential to fuel inflation, introduce blockages in supply chains and slow down the world economy as it recovers from shutdowns, analysts say. Meanwhile, rising bond yields can knock down technology stocks, whose future profits are generally worth less in today’s currency when discount rates climb. Tech stocks have been among the biggest drivers of the overall market’s gains in the past several years.

Government bond yields were little changed Wednesday, although they remained near recent highs.

The yield on the 10-year U.S. Treasury note was last at 1.522%, compared with 1.528% Tuesday. Yields fall as bond prices rise.

Overseas, markets retreated.

The Stoxx Europe 600 slid 1%, led lower by shares of travel, leisure and retail companies. Aircraft maker Airbus and Jeep-owner Stellantis fell more than 2% apiece.

Hong Kong’s Hang Seng fell 0.6%.

In commodities markets, natural gas prices whipsawed while oil prices retreated but stayed within striking distance of multiyear highs.