The Dow opened slightly higher on Wednesday, boosted by Boeing's 3.4 per cent jump after strong results, while the Nasdaq and S&P 500 were little changed as United States bond yields climbed above the 3 per cent level. The blue-chip index Dow Jones Industrial Average fell by 423 points (-1.7%) to 24,024.13 points, wiping out an increase of 131 points from the beginning of the session.
The S&P 500 index on Wednesday added 4.84 points, or 0.2 percent, to 2,639.40.
The Nasdaq composite dropped 121.25 points, or 1.7 percent, to 7,007.35.
Canada's main stock index fell on Tuesday as lower oil prices weighed on energy shares, while investors anxious about the prospect of higher global borrowing costs after the benchmark US 10-year Treasury note yield hit 3 per cent for the first time in four years. That means costs for companies are up. Shares sold off after the company warned revenue growth would slow in the second half of the year.
Alphabet shares fell 4.77 per cent, erasing the stock's year-to-date gains as rising expenses and shrinking margins overshadowed the company's better-than-expected profit.
The first time since 2014, 10-year Treasury yields hit three percent. Chemical companies and other materials makers could also see their profits affected as oil prices and other expenses rise.
Industrial and basic materials companies and technology firms took some of the worst losses. This is partly due to the company's president Brad Halverson's statement, according to which the company's forecasts are that the first quarter will be the culmination of the year.
This was over a surge in government-issued debt due arising out of a revenue shortfall - and is related to the Trump administration's massive corporate tax cut, which was passed in December previous year.
"It's not a mystery why these things are happening", Baumohl said. Eastern time. The Dow Jones industrial average was down 509, or 2.1 percent, to 23,982.
Gold fell 0.7 percent to $1,324.10 an ounce and silver sank 0.8 percent to $16.57 an ounce. YIELDS QUESTION: Bond prices slipped again Tuesday. The S&P 500 is down 1.5% year-to-date.
Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12. Specifically, futures on the blue-chip index are trading above fair value this morning, thanks to a positive earnings reaction for Boeing (BA) - though pre-market upside is modest as the 10-year Treasury yield holds above the key 3% level.
The Nasdaq is down 138.77 points, or 1.9 percent. Exxon Mobil rose 1.5 percent after raising its dividend. The VIX Volatility Index was lower at 17.84 for a loss of -0.18 points or -1.00%.