US markets end mostly in red on Tuesday

23 Oct 2024 Evaluate

The US markets ended mostly in red on Tuesday amid concerns about the outlook for interest rates following a recent surge by U.S. treasury yields. After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25 basis point rate cut next month. Traders were cautious as treasury yields have moved notably higher in recent days amid worries about the U.S. fiscal deficit and comments from Federal Reserve officials hinting at gradual rate cuts. A steep drop by shares of Verizon (VZ) contributed to the dip by the Dow Jones Industrial Average, with the telecom giant tumbling by 5.0 percent on the day. The slump by Verizon came after the company reported third quarter earnings that beat street estimates but weaker than expected revenues.

On the sectoral front, housing stocks moved sharply lower amid concerns about the outlook for interest rates, resulting in a 3.1 percent plunge by the Philadelphia Housing Sector Index. The index pulled back further off the record closing high set last Friday. Substantial weakness was also visible among computer hardware stocks, as reflected by the 2.3 percent slump by the NYSE Arca Computer Hardware Index. Logitech (LOGI) helped lead the sector lower, with the computer accessories maker plummeting by 8.5 percent despite reporting better than expected fiscal second quarter results. Telecom and airline stocks also saw notable weakness on the day, while tobacco and gold stocks showed significant moves to the upside.

Dow Jones Industrial Average fell 6.71 points or 0.02 percent to 42,924.89 and S&P 500 was down by 2.78 points or 0.05 percent to 5,851.2, while Nasdaq gained 33.12 points or 0.18 percent to 18,573.13.