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US stock market sell-off continues on yield bump

Picture of Drew Meredith, CFP
Drew Meredith, CFP
Picture of Drew Meredith, CFP

Drew Meredith, CFP

Drew Meredith is one of the founders of Wattle Partners. He is an experienced financial and investment adviser with expertise in self-managed superannuation funds, superannuation strategies, investment analysis and portfolio construction. Drew is a Partner at Wattle Partners.
More analysis

It was another rough day for US stock markets with the US bond yield hitting a 3 month high, finishing over 1.5%.

The result, as expected, was a sell-off in highly valued technology companies, dragging the Nasdaq down 2.8% and the S&P 500 2.0% lower.

The Dow Jones outperformed by comparison, falling 1.6% as the financials and energy sectors outperform.

Shares in vaccine maker Moderna (NASDAQ: MRNA), Wells Fargo (NYSE: WFC) and NVIDIA (NASDAQ: NVDA) were especially hard hit.

Debt ceiling to be breached, energy prices create stagflation concerns

Exacerbating the risk and causing a spike in volatility was more grandstanding over an impending government shutdown and the nearing of the debt ceiling.

However, the government has never defaulted on its debt and on every previous occasion both parties have come to the table.

Meanwhile, spiking gas and oil prices in Europe and Asia are contributing to the risk of stagflation. Cost increases reduce consumers’ propensity to spend, hitting growth at the same time that pandemic policy support is removed.

US stock market movers

Here’s how other popular US stocks fared on Tuesday.

This negative lead is expected to send the S&P/ASX 200 (ASX: XJO) lower when the market opens this morning. For all the latest, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Get the golden rules

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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