Stocks plunge on September CPI print, 10-year yield jumps above 4%
The Dow fell more than 400 points to start off the trading session on Thursday after September CPI came in hotter than expected, while the 10-year Treasury yield topped 4%.
Video Transcript
[AUDIO LOGO]
- Brad, I know you're taking a look at the sector action. I don't see any green at all on that screen behind you.
BRAD SMITH: No, not at all. In fact, it's lake red here, especially if you take a look at consumer discretionary on the day. That's right now opened up out of the gate down by 3% here. And looking at some of the other major movements in declines, yeah, technology, of course, one of the most impacted sectors in a rising rate environment and the absence of easy money policies. You're seeing technology also move lower here today by about 2.9%.
But there's another story here also at play. And I want to go back to look at the yields here because that's where we're going to get a fuller view of the last time that we've seen the 10-year note actually get above that 4% level. And that's exactly what we're seeing here in the markets over the day and over this kind of longer stretch.
I'm just going to pivot around to really try and draw this line of the last time that we were at this level here. Our floor manager Mike said that I couldn't draw a straight line. Look at that Mike-- straight line here. Straight-ish. Yeah. It's my soft landing version of a straight line here. But anyway, this is the last time that we were at some of those levels.
You look at 2010. You even look back into 28, or 2008, excuse me, rather. And that's exactly when we were hovering around these 4% levels. And so that's what we're going to continue to track going forward throughout the rest of today's session as well.
