On Wall Street, stock prices fall for the second consecutive day

(Patria) - On Wall Street, stock prices are falling for the second consecutive day as yields on government bonds have risen, prompting some investors to redirect capital from stocks to bonds, reports NBC.

The Dow Jones weakened by 0.19 percent, to 35,215 points, while the S&P 500 slipped 0.25 percent, to 4,501 points, and the Nasdaq index fell 0.10 percent, to 13,959 points.

At the same time, stock prices fell in eight of the 11 most important sectors of the S&P 500 index. Investors are cautious because yields on US bonds have risen for the second consecutive day, after rating agency Fitch downgraded the credit rating of the United States on Wednesday.

Thus, the yield on 10-year government bonds reached 4.198 percent yesterday, the highest level since November last year.

- Increased bond yields are making stocks less attractive - says Tom Hainlin, strategist at U.S. Bank Wealth Management.

Yields are rising, among other things, due to speculation that the US central bank (FED) could raise interest rates once more by the end of the year or keep them at elevated levels longer than expected.

Namely, all the latest data indicate that the US labor market remains strong, which could support further growth in consumption and thus elevated inflation.

Thomas Barkin, president of the Federal Reserve Bank of Richmond, said yesterday that inflation is still too high, although the latest data show that price pressures are easing.

Stock prices also fell on European exchanges yesterday. The London FTSE index weakened by 0.43 percent, to 7,529 points, while the Frankfurt DAX slipped 0.79 percent, to 15,893 points, and the Paris CAC fell 0.72 percent, to 7,260 points.