Wall Street traded lower on Wednesday, continuing to decline yesterday, with investors also rating lower-than-expected private-sector employment data released earlier in February, indicating a slower economic recovery. than expected.
The climate is also burdened by the return of bond yields on an upward trajectory.
In particular, the Dow Jones industrial average is up just 25 points or 0.08%, while the broader S&P 500 is down 0.43% and the tech Nasdaq is down 0.94%.
The Dow Jones industrial average was down 0.5% at 31,391.52 points on Tuesday, the S&P 500 was down 0.8% at 3,870.29 points and the Nasdaq was down 1.7% at 13,358.79 points.
Investors are still worried about rising bond yields, which have returned to an upward trajectory with the European Central Bank refusing to take action to limit yields. This is followed by the yield of the American 10-year, which on Wednesday strengthened by 6 basis points to 1.468%.
This is despite the fact that the Federal Reserve reiterated on Tuesday that it is not worried about the return on interest rates, which is putting pressure on equity values as it indicates an increase in borrowing costs for businesses and individuals.
In particular, Fed official Lael Brainard said that inflation may rise but it will be temporary and is due to the inability of supply to meet the increase in demand as the economy tries to return to normal after the measures limited by the pandemic.
The climate is further aggravated by the data for the new jobs in the private sector in February, which were below expectations. According to the ADP, 117,000 jobs were created in February, lower than economists had expected 225,000 new jobs, but less than the revised January figure of 195,000.