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US stocks extended losses. Nasdaq fell into correction territory

stocks fell

The three major US indices fell for the second trading day amid the hawkish Fed's tone and rising bond yields. The 10-year US Treasury yield topped 1.9% before dropping to 1.83% on Wednesday. The Dow Jones Industrial Average slid 0.96%, the S&P 500 was down 0.97%, and Nasdaq fell 1.15%. 

The bank sector underperformed despite some strong earnings reports. Both Morgan Stanley and Bank of America beat expectations in the earnings results. Morgan Stanley's equities trading revenue grew 13% in the fourth quarter. Morgan Stanley's share price rose 2.4%, and Bank of America was up 0.92%. However, JP Morgan Chase, Wells Fargo, Citigroup, and Goldman Sachs all fell between 1-2%. 

The tech giants closed in a mix. Microsoft bounced 0.16% after the last day selloff when it announced to buy the video game publisher, Activision Blizzard in all-cash of $68.7 billion. Sony's share price tumbled 12% on Tuesday on the news. Meta Platforms was up 0.37%. Apple and Amazon were down more than 1%, while Alphabet fell 0.69%. Netflix was up 0.93%, to $515.94, ahead of the Q4 earnings report on Thursday. 

The consumer discretionary sector declined 1.5%, dragged by Teslas Motor. The EV maker's share slid 3.14%, to below $1000. 

The US 2-year Treasury yield was at 1.03%. And the 10-year Treasury yield was slightly lower at 1.84%.

The gold futures price popped $30.6, to $1843.1 per ounce. The precious metal broke up the key resistance level at $1,830 for the first time since the 22nd of November. The silver future also surged 3.14%, to $24.23 per ounce, the highest in 2 months. The spikes in gold and silver are sparked by a risk-off sentiment resulting from the sharp falls in the stock markets.

The crude oil futures price was up 1.23%, to $86.48, heading into the $90 level amid supply fears and rising demand. 

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