Stocks are modestly lower on Wall Street, adding to their losses following a sharp two-day slide, as the market remains under pressure from rising bond yields.
Technology stocks were among the biggest drag on the market, with some exceptions. Cisco Systems was a bright spot, rising 3.8 per cent. The maker of networking equipment reported stronger profit and revenue for the latest quarter than analysts expected.
The Australian continued its retreat, falling below 64 US cents. It was 0.4 per cent lower at US63.99¢ at 5.25am AEST.Bitcoin reached an almost two-month low as risk aversion weighs on the cryptocurrency market with global government bond yields climbing to the highest in about 15 years. The largest digital asset by market value fell as much as 4.3 per cent to $US27,699 , extending losses after dropping below $US28,000 for the first time since June 20.
Higher yields also mean borrowers have to pay more to get cash, which can crimp corporate profits and cause unforeseen things to break in the system, like the three high-profile U.S. bank failures that shook markets this spring. A separate survey of manufacturers in the mid-Atlantic region unexpectedly showed growth, when economists were expecting another month of contraction. Manufacturing has been one of the areas of the economy hit hardest by much higher interest rates.
Minutes from the Fed’s latest meeting released Wednesday suggested officials are unsure of their next moves. They say it will depend on what upcoming reports about inflation and the job market say. A stronger economy would burn more fuel, and oil prices rose Thursday to recover some of their slide from earlier in the week. A barrel of U.S. crude added 1.3 per cent to $80.38. Brent crude, the international standard, gained 0.8 per cent, to $84.09 per barrel.
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