Wall Street faltered on Friday as bank stocks fell and technology stocks bounced back from sudden losses the day before.
The S&P 500 blue chip index fell 0.1 percent, reversing the course after breaking into positive territory in afternoon trading. The Nasdaq Composite advanced 0.8 percent fell by 3 percent on Thursday, when the yield on the ten-year U.S. treasury briefly exceeded 1.75 percent.
During the week, the S&P 500 and Nasdaq Composite fell 0.8 percent per piece.
Misdemeanor trading on Friday came to what is known as a “quadruple return” – a day that brings simultaneous expiration of futures contracts with stock indices, stock option options, stock options and futures of individual stocks and triggers large volumes that can shake markets in the last hour shop.
Over 16.9 billion shares traded on U.S. stock exchanges, including the New York Stock Exchange and Nasdaq, more than 41 percent more than the average daily volume over the past year.
Peter Boockvar, chief investment officer at Bleakley Advisory Group, attributed the moves to a “noisy expiration” but added that “the fatigue buying mentality is not dying easily despite the sharp rise in long-term interest rates compared to the last few months”.
Meanwhile, the ten-year treasury yield fell 0.001 percentage points to 1.728 percent.
U.S. Treasuries initially sold out again on Friday after the Federal Reserve said it would not extend easing bank capital requirements which he introduced in March last year to help ease the bond market at the height of the Covid-19 crisis.
The decision weighed on bank shares, and the S&P 500 finance sector shrank 1.2 percent.
Still, Fed’s promise to explore a more permanent change in the leverage ratio rules to prevent strains in the treasury market and the broader financial system could “mitigate the negative impact” on yields, said Kathy Bostjancic, an economist at Oxford Economics.
In Europe, the Stoxx 600 index across the region lost 0.8 percent, Germany’s Xetra Dax fell 1.1 percent, while Britain’s FTSE 100 fell 0.9 percent.
The decline in stock markets in Europe and Asia was driven by this week’s decline an increase in U.S. treasury yields, which compare borrowing costs in many financial markets. Rising yields, reflecting declining demand for bonds, have forced investors to overestimate the value of high-growth stocks to reflect changes in future earnings expectations.
This sale of government debt has also “spilled over into the wider market,” said Robert Carnell, head of Asia-Pacific exploration at ING, pointing to falling gold and oil prices.
Since the beginning of this year, the price of the precious metal has fallen more than 8 percent. However, the price of oil fluctuated on Friday and rose towards the end of European trade.
Brent oil, the international benchmark, rose 2 percent to $ 64.53 a barrel after falling 7.6 percent overnight. West Texas Intermediate earned 2.4 percent to $ 61.42 a barrel after closing 7.1 percent on Thursday, the U.S. mark the largest one-day decline in six months.
In Asia, China’s CSI 300 stock index from Shanghai and Shenzhen was down 2.6 percent, while Hong Kong’s Hang Seng fell 1.4 percent and South Korea’s Kospi index lost nearly 1 percent.
In Japan, the reference value of the Nikkei 225 fell 1.4 percent, while Topix, the second stock index, rose 0.2 percent. The moves came when the central bank waived its obligation to buy an average of 6 tonnes ($ 55.2 billion) a year after its biggest policy revision since 2016.
The differences between the two indices followed the announcement by the Bank of Japan that the purchase of funds traded on the stock exchange would be concentrated exclusively on those that follow Topix. The Nikkei 225 ran lower Fast Retailing, the parent of the Uniqlo clothing chain, which carries a lot of weight in that index.
Additional reporting by Leo Lewis of Tokyo