US stocks extend corrective action, NASDAQ tanks 1.6%

The US stocks eased yesterday as major averages all moved notably lower, with the Dow and the S&P 500 extending their losing streaks to three days. The Dow slumped 409.94 points (1%) to 42,514.95, the Nasdaq tumbled 296.47 points (1.6%) to 18,276.65 and the S&P 500 slid 53.78 points (0.9%) to 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions. The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.

CME Group's FedWatch Tool suggests the chances the Fed will leave rates unchanged in December have jumped to 30.2% from just 13.9% a week ago.
McDonald's dropped steeply by 5.1% which also weighed on the Dow. Fellow Dow component Coca-Cola (KO) also showed a notable move to the downside despite reporting better than expected third quarter results. AT&T(T) surged after the telecom giant reported third quarter earnings.
A substantial downside move of the computer hardware stocks resulted in a 2.2% slump by the NYSE Arca Computer Hardware Index.

Gold price had pulled back that also contributed to considerable weakness among gold stocks, as reflected by the 1.8% loss posted by the NYSE Arca Gold Bugs Index. Oil service stocks also saw significant weakness amid a decrease by the price of crude oil, dragging the Philadelphia Oil Service Index down by 1.4%. Steel, biotechnology and semiconductor stocks also notably moved downwards while airline stocks bucked the downtrend. Spirit Airlines (SAVE) led the sector higher, soaring by 46% after a report from the Wall Street Journal said Frontier Airlines is exploring a renewed bid for the budget airline.

Asia-Pacific stocks turned in yet another mixed performance. Japan's Nikkei 225 Index slid by 0.8%, while Hong Kong's Hang Seng Index jumped by 1.3%. Meanwhile, European stocks moved mostly lower on the day. The German DAX Index dipped by 0.2%, the French CAC 40 Index and the U.K.'s FTSE 100 Index fell by 0.5% and 0.6%, respectively.

In the bond market, treasuries extended the downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.8bps to a nearly three-month closing high of 4.24%.

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