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Stock Market today: Dow slides on geopolitical tensions, spike in Treasury yields

AuthorYasin Ebrahim
Published 04/14/2024, 08:13 PM
Updated 04/15/2024, 04:16 PM
© Reuters.

Investing.com -- The Dow slumped Monday, pressured by a spike in Treasury yields as geopolitical tensions and stronger-than-expected retail sales data dented expectations for interest rate cuts and overshadowed strong earnings from banking giant Goldman Sachs.

At 16:00 ET (20:00 GMT), Dow Jones Industrial Average fell 248 points, or 0.7%, S&P 500 fell 1.2%, and NASDAQ Composite fell 1.8%.

Spike in Treasury yields on strong retail sales curbs risk sentiment 

Treasury yields continued to add to recent gains after retail sales grew faster than expected last month, indicating strength in the consumer, which drives the bulk of U.S. economic growth, and cooling expectations for Federal Reserve rate cuts this year. 

The yield on the United States 10-Year Treasury jumped 11 basis points to 4.61%. 

The Commerce Department said Monday that retail sales rose 0.7% last month, topping economists’ forecast for a 0.4% rise. The retail sales control group – which has a larger impact on U.S. GDP –  rose 1.1% above expectations for a 0.4% rise. 

Following the data, some economists revised expectations upward for Q1 economic growth and warn that rates cuts weren't coming anytime soon. 

"A third straight quarter of GDP growth over 3% should be the nail in the coffin for anyone expecting rate cuts any time soon," Jefferies said in a note.

Goldman Sachs, Charles Schwab help blunt losses in financials

Investment bank Goldman Sachs (NYSE:GS) was one of the few bright spots on the day, closed nearly 3% higher after reporting a jump in Q1 profit, fueled by a recovery in underwriting, deals and bond trading in the first quarter that lifted its earnings per share to the highest since late 2021. 

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Charles Schwab (NYSE:SCHW) stock rose 2%, after brokerage reported first-quarter earnings that topped Wall Street estimates, driven by a surge in asset management fees in Q1.

Apple loses place as No. 1 phone maker; Tesla cuts jobs; Reddit in focus

Elsewhere, Apple (NASDAQ:AAPL) stock fell 2% after data from research firm IDC indicated that the iPhone maker has lost its crown as the world’s No.1 phone maker, with Samsung regaining that spot in the wake of Apple’s weak first quarter.

Apple's smartphone shipments dropped about 10% in the first quarter of 2024, a period when global smartphone shipments increased 7.8% to 289.4 million units.

Tesla (NASDAQ:TSLA) stock fell more than 5% following reports that the EV manufacturer may be about to announce large scale redundancies as it grapples with worsening sales.

Reddit Inc (NYSE:RDDT) fell more than 5% after several Wall Street firms initiated coverage on the stock, with Morgan Stanley saying the stock was valued as it, together with peers JPMorgan and Goldman Sachs, slapped a neutral rating on the stock the social media platform at equal weight, saying shares are already trading at fair value.

But Deutsche Bank initiated coverage at buy with a $50 price target, saying Reddit has "significant opportunity to grow high-margin data licensing revenue, particularly with the Bulk Data product aimed at the large LLM players"

Geopolitical tensions weigh amid Iran-Israel conflict

Geopolitical tensions also gripped markets as Israel is reportedly weighing up an imminent response to an attack from Iran over the weekend, NBC reported Monday, citing an unnamed Israeli official.

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The potential for the tit for tat skirmishes to break out into a wider war in the Middle East has stoked fresh geopolitical tensions, forcing investors into safe-havens including gold.  

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

the market again is signaling a possible short term rally. this time as much as 60 S&P points, in the next 48 hrs from today's afternoon close.
this is just a short term signal the bigger picture will depend on whether the old high acts as a longer term support area for the s&p.
If Israel were to strike Iran, technicals go out the window. What time of day there do you reckon it'll happen? While US market is open? 4 pm NY time is 11 pm in Israel. Might take Israel a while to prepare for the complex strike of hitting Iran's nuclear sites.
said the water cooler trader...heh
All of you work in banks, funds, all the speculation platforms, hope u all go to he LL!
Dude you have issues
have a chill pill, jimmy.. you didn't fall for the DJT-scam, did you? is that why you're so angry?
C”mon, Iran, show them the nukes! Target the wallstreet! Show them how to destroy the market like a real man does!
They should literally tear down wallstreet, show them some power Iran, you got nukes, the american wants the market down, give them boom boom big market destruction
Iran should redo911, give them a real market crash since the m f traders wanted one
The US invaded and regime-changed Iraq after 9-2011. Doing same to Iran before it goes nuclear ain't a bad idea.
First time for everything
Damn Dude, Take a DEEP BREATH , and RELAX.
Iran should help the wallstreet traders on pushing the market down by re do the 911, give them a real big market crash, since they want one
Iran should help these wall street traders on pushing the market down by re do the 911, give them a real market crash, since they wanted a market crash, give them a big one
the retail sales figure is NOT adjusted for inflation -it does NOT show a strong consumer - it's a consumer who's buying less but paying way more for those fewer items. Don't let the MSM gaslight y'all
@me: Retail sales growth rate higher the inflation rate means consumers are buying more.
The laughingstock of the investing world is still trading for over twice what it's worth.
Patience, Mitch. The correction has just started.
and we're talking a global correction 10%+, even a bear market possible if majority sentiment shifts to no rate cuts in 2024. check OBV 20EMA, MACD, ADX, Stochastic, and RSI on major indices and sectors. it's a textbook correction underway.
Can't have both bear market and no rate cut.
Would yields ever fall? They are rising on all news no matter good or bad, that's annoying.
yields are likely to keep on going higher as there are fewer and fewer major buyers of US treasuries - Japan and china are net sellers now and buying gold instead - as are most of the governments and central banks of the 30 odd countries in or about to join the BRIcs trading bloc - so the US is going to have to keep offering higher rates to attract fewer and fewer buyers - the Ponzi scheme is about to implode! US having to pay far higher interest rates just to pay the interest on their runaway debt just as they're cranking up spending for war!!!!
I talked to the new owner of a new Tesla pickup the other day. Once people actually see these monsters on the road, they will be wanting one. I'm all for ICE(s), but this one is worth the money.
the sort of folk who could afford those things and actually want to buy one are all losing their jobs in massive numbers - Tesla is laying off people as there's a massive loss of demand for EVs in a very competitive and crowded market - all the while the infrastructure still isn't in place in much of the Western nations, never mind the rest of the world, when it comes to efficient and effective charging points
~80% of EV charging happens at home.
I don't want or like EV's. All I'm trying to say is that there will be a lot of people who will want this truck when they actually see it. Those that can afford it, maybe as a second toy, (Bad sentence structure, I know.)
Silver from biggest loser$ to top trade...going to spike like cocoa?
on the upside large divvy day...cheers
Market went from green to red today because there are not enough trans people in charge of the Fed. I hope the Biden admin prioritizes this above all else like he has in every other facet of his administration.
wtf lmaooo
yes, no matter what the qualifications - so long as they tick the boxes, they'll get the job - like the transport sec Butt joke who believes bridges are racist
When would Iran bomb the wall street to kill all these m f traders?
You f idiots, stocks go up only because more people buying it than selling it
Hahaha, basic : stock go up is because more money buying it than selling it, wise versa for stock go down.
US money supply has been decreasing since mid-2022, after it expanded every year under Trump, at especially high rate in 2020.
Did the “economists” did any data collection for their expectations? I hope there would be a guy do something like the movie “Assault on Wall Street” to those market manipulators! They totally deserve it!
They did.
But they did not use the exact sample selection and size, by the way, the economists did not , they just gave comments on what they thought.
Really, they did.
So, a 10-20% correction because of the 'rate-cuts-are-already-priced-in-bs-rally' can be expected soon?
No. After a rally pricing in a rate cut soon, there was a lower momentum rally then consolidation period as 1st rate cut was pushed out further in time.
nah, I reckon big reversal now happening - in short term, no share buy backs compared to the billions that have been pumped in over the past few months - all the while the insiders have been selling all their shares!!!!! Hello!!! Big warning sign!!!!! we've go six rate cuts priced in and at this rate of oil skyrocketing, no rates cuts this year instead as Kashkari suggested - even another rate hike if inflation continues to accelerate higher - all the while, the real economy is slowing down fast - in the US and is already in recession in much of the rest of the world - US only not in recession yet due to Biden spending trillions - the real economy is already toast
There is no 'six rate cuts priced in' this year.
Who says we are gonna in recession, soft landing?? We are nowhere to any kinda landing, these economists are the market speculators
No one knows with 100% certainty what the market will do; we're all speculators.
very hard landing is already happening - just have to look at Dow transports - all you need to know - and the mass layoffs of major US companies over the past year, especially UPS and FedEx
@me: There's always some businesses doing worse than average, always some shedding workers, even in a very strong economy. Labor market has been strong -- that's why rate cut hasn't happened yet.
Investing.com keep blocking my comments
Because you keep delivering nothing burgers all the time, roach boy
That will be because like all mainstream media, they are part of the deep state cia military pharma censorship complex where only their narrative is allowed
Dont worry Jimmy. blocked or not you are now under the microscope.
So why do we need the “economists” expectation? Arent we suppose to use the data to make policy, we dont need these economists to expect anything. These exonomists didnt collect the data. I expect all these economists go to where they belong, H e LL!
this didnt age well
Update your headlines.
Headline is correct.
During Trump admin, government spending was 6.7T. During Biden admin it is 2.5T. The pandemic and the supply chain disruption caused a supply chain problem which contributed heavily to inflation, during Trump admin there as a tax cut which pumped more money into the economy, and yet Biden is to blame for the inflation? Remember when it came to unemployment benefits, they paid $600 but Trump wanted $2000 and yet Trump supposedly would have done better with inflation.
Trump's maga cronies up here are really fudging the numbers to cover up Trump's disasterous economic policies that the prresint administration and the fed are trying to clean up.
@Ac: One of Trump's 1st act in office was to dismantle Obama's pandemic preparedness policies, which led to a more severe pandemic in his last year, and to his reelection loss. Meaning 1st thing he did was to plant the seed of his own failure. His banking deregulation led to the 2023 banking crisis that the Biden admin is cleaning up.
Trump, the one who calls Biden 'Sleepy', sleeping in his own criminal trial today is another reason to vote for the Biden.
hello, is anyone seeing sector and broad equity market technicals US and foreign signaling a global correction 10%+?
put a name on it....
With markets technicals, one can see anything one wants to.
the signals on Friday were signaling a rally; unfortunately those particular signals tell yu t only that a rally is possible in the next two daily trading sessions and because we have a almost 24 hr markets now they can occur during an overnight session.. we saw the rally occur in the overnight session and early Monday morning then a reversal. I was stopped out Monday with a small profit.
A win for Israel. Inflation forgotten. Rate cuts imminent. LOL
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