Stock Market Today: Spiking Treasury Yields Keep Pressure on Stocks
Stronger-than-expected September retail sales sent government bond yields back toward recent highs.
Stocks were notably lower in early trading Tuesday as investors took in the latest retail sales data and another batch of bank earnings. The main indexes managed to pare most of these losses by the close, though, even as Treasury yields spiked.
Ahead of the opening bell, data from the Census Bureau showed retail sales rose 0.7% from August to September, more than economists were expecting. Excluding auto sales, retail sales were up 0.6%.
"Retail sales defied expectations with a large September gain, putting consumer spending on very strong footing entering into Q4," says Jonathan Millar, senior U.S. economist at Barclays. "The latest print comes on top of a series of stronger-than-expected readings for nearly all major indicators since the September Federal Open Market Committee meeting," Millar adds.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, according to CME Group, futures traders are pricing in an 88% chance the Fed will keep interest rates unchanged at its upcoming meeting, slightly higher than the 87% probability from one week ago.
Bank stocks mixed after earnings
On the earnings front, Bank of America (BAC, +2.3%) and Bank of New York Mellon (BK, +3.8%) closed higher after both financial firms reported higher-than-expected third-quarter earnings.
Dow stock Goldman Sachs (GS), on the other hand, fell 1.6% after earnings. The big bank said Q3 earnings were down 36% year-over-year to $5.47 per share, though this was still more than analysts were anticipating. Revenue of $11.8 billion also beat estimates.
Nvidia sheds $53 billion in market cap
Nvidia (NVDA) was another notable decliner today, with the semiconductor stock slumping 4.7% after the U.S. said it will expand restrictions on sales of artificial intelligence (AI) chips to China. While shares finished well off their session lows after a company spokesperson said that Nvidia doesn't "expect a near-term meaningful impact" on financial results, today's slide still chopped $53 billion from the trillion-dollar chipmaker's market cap.
Also in single-stock news, VF Corp (VFC) surged 14.0% after The Wall Street Journal indicated activist investor Engaged Capital is building a stake in the North Face parent. The report suggests Engaged wants to help VFC cut unnecessary costs and potentially shake up the board of directors.
It's been a rough stretch for VFC stock, which is down 33% for the year-to-date. Off the price charts, the retailer slashed its dividend in February, though at 7.4%, it remains one of the highest yielding dividend stocks in the S&P 500.
As for the major indexes, the rate-sensitive Nasdaq Composite was the worst performer – shedding 0.3% to 13,533 as yields on the 2-year and 10-year Treasuries headed back toward levels not seen in nearly two decades. The broader S&P 500 ended marginally lower at 4,373, while the blue chip Dow Jones Industrial Average eked out a 0.04% gain to 33,997.
Related content
-
Forget FIRE: Why ‘FILE’ Is the Smarter Move for Child-Free DINKsHow shifting from "Retiring Early" to "Living Early" allows child-free adults to enjoy their wealth while they’re still young enough to use it.
-
7 Tax Blunders to Avoid in Your First Year of RetirementA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing LandscapeNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
Stocks Struggle for Gains to Start 2026: Stock Market TodayIt's not quite the end of the world as we know it, but Warren Buffett is no longer the CEO of Berkshire Hathaway.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
Stocks End Volatile Year on a Down Note: Stock Market TodayAfter nearing bear-market territory in the spring, the main market indexes closed out the year with impressive gains.
-
Stocks Extend Losing Streak After Fed Minutes: Stock Market TodayThe Santa Claus Rally is officially at risk after the S&P 500's third straight loss.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
Santa Claus Rally at Risk as Tech Stocks Slump: Stock Market TodayThe Nasdaq Composite and Dow Jones Industrial Average led today's declines as investors took profits on high-flying tech stocks.
-
Gold and Silver Shine as Stocks Chop: Stock Market TodayStocks struggled in Friday's low-volume session, but the losses weren't enough to put the Santa Claus Rally at risk.
-
The Santa Claus Rally Officially Begins: Stock Market TodayThe Santa Claus Rally is officially on as of Wednesday's closing bell, and initial returns are positive.
