Dow Jones Dives As Treasury Yields Surge Toward 5%; House Speaker McCarthy Ousted

After-hours trading saw Dow Jones futures, S&P 500 futures, and Nasdaq futures all edge lower, indicating a potential decline in the stock market. The House of Representatives also voted to oust Speaker Kevin McCarthy, leading to concerns over potential political chaos. The stock market experienced a sell-off on Tuesday as Treasury yields continued to rise, driven by a surge in job openings. Billionaire investor Ray Dalio predicted that the 10-year Treasury yield could soon reach 5%, a view shared by activists Bill Ackman and Larry Fink. The political dysfunction in Congress is also unnerving investors. The Dow Jones fell 431 points, putting it in negative territory for the year. The S&P 500 fell below its September 27 low, ending its rally attempt, and the Nasdaq rally is hanging by a thread. Market breadth was once again poor, with several stocks hitting resistance at the 50-day line. It is clear that the market is in correction mode, with major indexes and leading stocks performing poorly. The recent market turmoil is being attributed to the surge in Treasury yields and the political instability in Congress. In terms of individual stocks, Nvidia, Booking Holdings, Celsius Holdings, Super Micro Computer, and Palantir Technologies all suffered technical damage. However, Nvidia stock still looks relatively normal, while Palantir experienced a bounce late Tuesday on reports of a potential large contract. Overall, the stock market is currently in a correction, with major indexes and leading stocks looking weak. It is difficult to predict when the slide will end, but attention should be paid to the 10-year Treasury yield, which will likely impact the market’s response.