Stocks fell in choppy trading, retreating from records set the previous day. Major indexes started the day higher following a string of upbeat earnings reports. Selling pressure then picked up in the afternoon, with shares of energy and financial companies posting among the steepest losses in the market. The S&P 500 dropped 0.51% to 4551.68. The Dow Jones Industrial Average lost 0.74% falling to 35490.69 while the Nasdaq Composite was flat 15235.84. Long-dated Treasury yields posted their biggest one-day declines in more than three months amid souring sentiment in the bond market, in which traders questioned whether the economy can handle higher interest rates possibly starting next year.
European equities dropped as investors locked in gains from this month’s rebound, while some of the day’s earnings releases disappointed. Stoxx 600 Europe Index lost 0.36% on Thursday, DAX fell by 0.33%, and CAC 40 decreased by 0.19%, while FTSE 100 was down 0.12%. Longer-term German sovereign securities gained in Wednesday afternoon trading. Bloomberg Germany Index of government bonds fell 5.4% in the past year.
Asian equities dipped for a second day as risk-off sentiment prevailed amid global concerns that the prolonged pandemic and elevated inflation will hurt economic recoveries.
Oil prices fell on Thursday after the Energy Information Administration said US oil inventories increased 4.3 million barrels last week, more than doubling consensus forecasts. Brent crude futures price was $84.58 a barrel on Monday, down 2.11%. U.S. West Texas Intermediate (WTI) crude futures stood at $82.66, down 2.35%.