Brendan McDermid/Reuters
- US stocks slipped lower amid a continued rise in interest rates and energy prices.
- The 10-year US Treasury yield hit a four-month high of 1.57% early Tuesday morning.
- The move lower in stocks comes even as ADP's September jobs update was better than expected.
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US stocks traded lower on Wednesday, giving up much of Tuesday's gains as interest rates jumped higher amid an ongoing surge in energy prices.
The 10-year US Treasury yield hit a four-month high of 1.57% early Tuesday morning before falling back to around 1.52%. That move comes amid the ongoing uncertainty of a debt ceiling raise that Congress needs to enact before the Treasury Department runs out of money on October 18.
Treasury Secretary Janet Yellen has warned that failure to raise the debt ceiling in time would likely result in a surge in interest rates, which would raise borrowing costs and hurt the economy.
Meanwhile, energy prices continue to rise, both for oil and natural gas, as a surge in demand and lack of supply in Europe contributes to soaring costs.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:
- S&P 500: 4,309.58, down 0.83%
- Dow Jones Industrial Average: 34,030.28, down 0.83% (284.39 points)
- Nasdaq Composite: 14,294.11, down 0.95%
SEC Chairman Gary Gensler said that his agency wouldn't impose a cryptocurrency ban like China has, but added that Congress could. Meanwhile, SEC Commissioner Hester Peirce said it's a shame regulators aren't "taking up the mantle" to provide rule on digital currencies.
ARK Invest's flagship ETF has sold nearly its entire position in Nintendo, ahead of an expected OLED screen update for its popular Switch videogame system.
The gains for Shiba Inu coin keep rolling in after an Elon Musk tweet helped spark a rally in the cryptocurrency. The coin is up more than 220% in the past week.
Charlie Munger's Daily Journal Company has nearly doubled its stake in Chinese e-commerce giant Alibaba. The buys come amid a sharp decline in the stock as China continues to impose a regulatory crackdown against big business.
West Texas Intermediate crude oil fell as much as 1.03%, to $78.12 per barrel. Brent crude, oil's international benchmark, fell 0.99%, to $81.74 per barrel.
Gold fell as much as 0.15%, to $1,758.20 per ounce.