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Investing.com — The S&P 500 struggled for direction Wednesday, as rising Treasury yields turned risk sentiment more bearish, keeping growth sectors including consumer and tech stocks in the crosshairs.
The fell 0.6%, the slipped 0.7%, 249 points, fell 0.6%.
Treasury yields resume advance following upbeat economic data
Treasury yields continue to hold sway on market direction after the swelled to 4.63%, marking fresh 15-high year high.
The dash higher in yields come amid fresh concerns the Federal Reserve may be forced to hike interest rates again later this year as signs of a resilient economy threaten to keep inflation elevated.
The Commerce Department said on Wednesday rose 0.5% last month, confounding expectations for a 0.5% fall . excluding aircraft, a closely watched proxy for business spending plans, rose 0.9 % last month, compared with expectations to remain steady at 0%
{Big tech slide wobbles, but Google stays afloat; Meta unveils Quest 3 VR headset
Big tech, excluding Google, continued to feel the pressure from rising rates, with Apple (NASDAQ:) leading to the downside with a more than 1% decline.
Alphabet (NASDAQ:), however, remained above the flatine, while Meta Platforms Inc (NASDAQ:) slipped 1% lower after unveiling its third Quest 3 virtual reality headset.
The VR device starts at $499 and is expected to hit the shelves on Oct. 10
Cannabis stocks give up gains despite banking bill progress
Cannabis stocks were caught up in the broader market slide and gave up intraday gains despite optimism that cannabis-related companies are inching closer to securing the right to access banking system services.
The U.S. Senate Banking Committee voted to advance the Secure and Fair — Enforcement Regulation Banking Act, or the SAFER Banking Act, which seeks to ensure that all legal cannabis have access to the banking system – to the Senate floor.
Cannabis, which is legal for recreational or medical use in 39 states, remains banned under federal law, preventing marijuana companies from access to banking services needed to boost finances.
Cronos Group Inc (NASDAQ:), SNDL Inc (NASDAQ:), and Tilray Inc (NASDAQ:) turned negative lower in recent trading, with the latter down 1%.
Costco rises on Q4 earnings beat
Costco Wholesale (NASDAQ:) rose more than 1% after reporting fiscal fourth-quarter that beat on both the top and bottom lines as margins improved.
The earnings beat comes despite the squeeze on consumer, with analysts confident that the big box retailer can maintain its momentum.
“We see several potential positive catalysts in place, with a membership fee increase likely to occur during FY’24 and the potential existing for a special dividend,” UBS said in a note.
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