Asia-Pacific stocks were broadly lower Wednesday following sizable declines on Wall Street as the yield on the 10-year U.S. Treasury note hit 3%. 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 Toronto Stock Exchange's S&P/TSX composite index closed down 75.06 points, or 0.48 per cent, at 15,477.00. The Nasdaq composite gave up 3 points, or 0.1 percent, to 7,003.
After Caterpillar spooked investors by warning about higher material costs on Tuesday, Boeing executives, on a post-earnings call noted that it was not seeing a material effect from raw material costs. Moves for the equity markets came against the backdrop of rising borrowing costs, which were causing a reassessment of stock valuations.
The initial growth in the markets was thanks to Caterpillar, which reported higher than expected profit and revenues. The worries began to set in after construction and mining equipment maker Caterpillar said it doesn't expect to top its first-quarter profit for the rest of this year. The yield on the 10-year Treasury note rose to 2.99 percent from 2.98 percent. Moreover, Facebook, Amazon, Netflix, and Alphabet, formerly known as Google, also known in the industry as the "FANG" stocks, took big losses, a combined $84 billion in market value lost just in today's trading session. Industrial and basic materials companies and technology firms are taking some of the worst losses.
Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year.
Stocks shot up at the end of 2017 and the start of 2018 as investors bet that the corporate tax overhaul would lead to bigger profits for American companies and greater economic growth.More news: Coli linked to romaine lettuce confirmed in Washington
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"It's not a mystery why these things are happening", Baumohl said.
The Dow Jones industrial average fell 97, or 0.4 percent, to 23,928.
The S&P 500 index lost 11 points, or 0.4 percent, to 2,623. YIELDS QUESTION: Bond prices slipped again Tuesday.
Other notable index closes included the S&P 400 Mid-Cap Index at 1,888.01 for a gain of 1.19 points or 0.06%; the S&P 100 at 1,155.38 for a gain of 1.54 points or 0.13%; the Russell 3000 at 1,566.31 for a gain of 1.95 points or 0.12%; the Russell 1000 at 1,463.95 for a gain of 2.20 points or 0.15%; and the Dow Jones U.S. Select Dividend Index at 688.44 for a gain of 1.34 points or 0.20%. The futures on the U.S. oil variety WTI dropped its price by 1.14% to 67.86 United States dollars per barrel.
Later in the day, energy companies got a boost after Exxon Mobil said it is raising its quarterly dividend.
Declining issues outnumbered advancing ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners.