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On Wednesday late in the morning, the average Dow Jones stock index has traded more than 350 points, which has allowed the index of the best-in-class stocks to fall below the trend line. long-term. The equity gauge was down 380 points, or 1.4%, to 26,052, closing below 26,009.57, off the 50-day moving average. Market technicians follow moving averages to help determine the bullish and bearish momentum of an asset. The sustained decline in the Dow Jones index highlights a downward trend for US equities, as government bond yields have risen rapidly to multi-year highs. The 10-year Treasury Bill
TMUBMUSD10Y, + 0.21%
It returned 3.23% – the highest yield since 2011. The increase in yields over the last few sessions has forced investors to re-evaluate stock valuations, including shares related to technology and the Internet. Higher rates can also make government bonds more attractive to investors than equities, which are considered relatively risky. The S & P 500 Consumer Index
SPX, -1.54%
at the same time, it was down 1.5%, to 2838, on the way to experiencing its longest run of losses since the conquest of President Donald Trump in November 2016. The index also threatened to end in below its 50-day moving average. The Nasdaq composite index
COMP -2.28%
was down 2% to 7,570.
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