Economist's Insights

Yesterday’s Trading Activity – Stocks Partially Recover from Tech Drop as Yields Recoup a Portion of Wednesday’s Fall

Jul 27, 2017

Tech stocks tanked Thursday, pushing the S&P and Nasdaq into negative territory and dragging the Dow down briefly from its intraday high. Before the market closed, the Nasdaq and S&P had both partially pared their losses and the Dow managed to return to positive territory to close at a new all-time high. Boeing added to its Wednesday gains, accounting for 52 of the Dow’s 86-point gain on Thursday, while Verizon rose 7.7% to contribute another 23 points. Verizon’s big day, driven by larger-than-expected subscriber growth, also helped the telecom sector to a first place finish within the S&P. Treasury yields saw a bit of intraday volatility but remained higher for the entirety of the U.S. session. The 2-year yield rose 0.8 bps to 1.36% while the 10-year yield added 2.3 bps to 2.31%. The Dollar was the top performing major currency and managed to recover most of Wednesday’s post-Fed decision sell-off. Crude prices rose for a fourth consecutive day as U.S. WTI took its weekly tally to +7.4% and closed above $49 per barrel for the first time since late May.