© Reuters.
Investing.com – The Dow ended lower for a second straight day on Wednesday as Treasury yields continued to rise after the July Federal Reserve meeting signaled another rate hike later this year.
The decline fell 0.5% or 180 points, the decline 1.2% and the decline 0.7%.
Treasury yields rise as Fed members turn more hawkish
Most Federal Reserve officials said “significant” upside risks to inflation keep further monetary policy tightening on the table for later this year, according to minutes of the Federal Open Market Committee’s March 25-26 meeting released Wednesday July emerges.
Minutes also showed a reversal by the Fed on the economic outlook, as Fed officials no longer expect a “mild” recession later this year.
The hawkish undertones lent credence to bets on higher and longer rates and pushed government bond yields to new highs in October.
Tech feels pressure from chip decline and rising Treasury yields
Tech led the broader market lower as chip stocks took a breather from the recent crisis due to pressure from Intel Corporation (NASDAQ:). Coherent Inc (NYSE:) and Advanced Micro Devices Inc (NASDAQ:).
Intel plummeted more than 3% after backtracking on its acquisition plans tower semiconductor (NASDAQ:) as the chipmaker failed to secure regulatory support for the deal in a timely manner. Intel will pay a $353 million break-up fee for exiting the deal.
Coherent Inc (NYSE:), meanwhile, tumbled 29% after an unexpected fourth-quarter loss and a weaker-than-expected guidance.
Target and TJX impress in the profit phase
Goal Corporation (NYSE:) reported second-quarter sales that beat Wall Street estimates and the retailer cut its full-year guidance, but the stock rose more than 2% as investors cheered signs of lower inventories and improved margins.
TJX Companies Inc (NYSE:) climbed 4% after the company raised its full-year guidance as results peaked in the second quarter after lower expenses helped boost margins.
“Overall, this is a strong result for TJX and we are encouraged by the magnitude of the quarterly overrun and the increase in full year guidance,” Goldman Sachs said in a statement.
Coinbase stagnates after claiming crypto futures victory
Coinbase Global Inc (NASDAQ:) announced Wednesday that it has received regulatory approval from the National Futures Association to offer bitcoin and ether futures to eligible U.S. consumers.
Andrew Sears, CEO of Coinbase Financial Markets, said the approval is expected to enable growth for cryptocurrency exchanges, as crypto derivatives account for the majority of global crypto trades at around 75%.
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