The S&P 500 pulled back on Nov. 12, 2024, after reaching a record close above 6000 points. The Dow Jones Industrial Average fell 360 points amid rising bond yields, and the Nasdaq traded lower, reflecting broad market declines.
Treasury yields climbed, causing investor concern and prompting a reassessment of stock valuations. The Federal Reserve’s Barkin mentioned readiness to respond to inflation, affecting market sentiment. Notable stock movements included Trump Media, which was largely unchanged amidst mixed messages related to the broader economic impact of the Trump administration’s policies.
MicroStrategy, Tesla, Nvidia, and Home Depot experienced movement in line with general market trends.
S&P 500 pulls back
Higher bond yields pressured stocks, particularly those in technology and high-growth sectors.
Oil futures changed little after a significant 3% loss the previous day, with WTI rising slightly to $68.12 a barrel. Gold extended its tumble to a third session, mirroring broader market movements influenced by rising Treasury yields. Paulo Trevisani of Dow Jones Newswires noted that oil futures rose slightly despite forces like the expected greater domestic oil production under the new administration putting downward pressure on energy prices.
Gelber & Associates highlighted that the Trump administration could lead to increased domestic production and possibly reduced exports to China, given stricter trade policies and a weak Chinese economy. The stock market paused after a record-setting rally with major indices pulling back. Rising Treasury yields and investor anticipation of Federal Reserve responses to inflation were key factors driving today’s market movements.
Oil futures saw modest recovery after recent losses, while gold continued to decline.
