U.S. Stocks Fall From Records, Treasuries Flat: Markets Wrap

10-year yield drops from highs after auction, Nafta report

S&P 500 halts six-day rally, sees first loss of 2018

Mark Hawtin, investment director at GAM, talks about the impact of inflation levels on bond and equity markets.

U.S. stocks fell for the first time this year as shares that serve as bond proxies tumbled on speculation interest rates will continue to rise. Treasuries turned higher in late trading after demand at a 10-year auction was robust and Canadian officials were said to see rising odds that the Trump administration will leave Nafta.

The S&P 500 Index snapped a six-day rally that was the longest since October, with shares in utilities and real-estate firms leading declines. Chipmakers also slumped, while banks rallied on the prospect for higher rates. Canada’s dollar weakened and its two-year bonds surged on the trade-pact report. The 10-year Treasury yield ended little changed after a wild ride that took it toward 2.60 percent on reports that China is considering slowing purchases. Its descent from highs began after a measure of demand at the government auction showed plenty of appetite for the debt.

The Nafta news damped risk appetite in the U.S. afternoon, halting a comeback for stocks that began the day on the wrong foot thanks to the news out of China. The S&P 500 Index hasn’t fallen this year, as investors speculate the American economy is poised to take off thanks to tax reform. Canadian officials, speaking Wednesday on condition they not be identified, said there’s an increasing likelihood Donald Trump will give notice about a withdrawal from Nafta, threatening the decades-old trade regime.

Bill Gross of Janus Henderson explains why he’s gone short on bonds.

Daybreak: Americas." (Source: Bloomberg)

Here are some of the main events to watch for this week:

U.S. inflation data are forecast to show price pressures remain muted for now, giving hawks little reason to argue for faster tightening.

St. Louis Fed bank President James Bullard and head of the New York Fed Bill Dudley are among central bankers scheduled to speak.

A reading on China’s money supply is expected in coming days.

JPMorgan Chase & Co. and Wells Fargo & Co. are due to report earnings on Friday

Terminal users can read more in our markets blog.

These are the main moves in markets:

Stocks

The S&P 500 fell 0.1 percent to 2,748.27 at 4 p.m. in New York. It earlier fell as much as 0.6 percent before erasing that loss, only to turn lower on the Nafta news. 

Real-estate firms and utilities that act as rate proxies fell the most. Semiconductors also slumped.

The Dow Jones Industrial Average fell 0.1 percent and the Nasdaq 100 Index lost 0.2 percent.

The Stoxx Europe 600 Index fell 0.4 percent, the largest decrease in three weeks.

The MSCI All-Country World Index retreated for the first time in seven days.

Currencies

The Bloomberg Dollar Spot Index fell 0.1 percent.

The loonie sank 0.8 percent.

The euro climbed 0.1 percent to $1.1948.

The Japanese yen surged 1.1 percent to 111.42 per dollar, the strongest in more than six weeks on the largest jump in seven weeks.

Bonds

The yield on 10-year Treasuries was little changed at 2.55 percent.

Britain’s 10-year yield climbed one basis point to 1.292 percent, the highest in almost six weeks.

Commodities

Gold futures increased 0.4 percent to $1,318.30 an ounce.

West Texas Intermediate crude increased 0.8 percent to $63.47 a barrel, the highest in more than two years.

— With assistance by Haidi Lun, Adam Haigh, and Natasha Doff

Before it's here, it's on the Bloomberg Terminal.LEARN MOREHave a confidential news tip?
Get in touch with our reporters.Most Read

China Weighs Slowing or Halting Purchases of U.S. Treasuries

U.S. Stocks Fall From Records, Treasuries Flat: Markets Wrap

Classified Military Satellite Goes Missing After SpaceX Launch

Bitcoin Can Drop 50% and China Miners Will Still Make Money

Watch Out, Airlines. High Speed Rail Now Rivals Flying on Key Routes

Terms of Service Trademarks Privacy Policy (C)2018 Bloomberg L.P. All Rights Reserved Careers Made in NYC Advertise Ad Choices Website Feedback Help

Mixed outlook for gold as it remains range bound for past three months

Gold stocks down on flat metal price

Gold stocks down on metal decline

Huge quantifiable rise in geopolitical, economic and trade risks

Platinum clearly ahead of palladium for first time in seven years