Yields dropped sharply on on global easing Wednesday morning which triggered a sharp sell-off in US Equities. The Dow was down as much as 550 points before turning positive and ultimately closing at a mere 22 points down.
The yield on the 10-year US Treasury note slipped to 1.69% on concerns over a global economic downturn and expectations the Federal Reserve will further cut interest rates to ease increasing risks of recession. The yield edged up to 1.712 later in the session.
Financial behemoth JP Mortah Chase shares fell 2.2% while Citizen’s Financial Group fell nearly 4.5%.
Neither the DOW nor the SP500 broke below Monday’s low, and had a snap-back rebound when they got close to those levels. Many are attributing the sell-off and rebound on algorithmic trading and are urged to stay the course as fundamentals are still solid.