(As of 7:15 am PST)
Equities are tumbling in early
trading with the Dow down triple digits, while the other major US benchmarks
are also lower by nearly 1%. Concerns over rising global bond yields are to
blame for today’s downside move. Similar to what happened last week, rates on
European debt soared Tuesday, sending bonds lower as Eurozone inflation
expectations picked up. The recent rise in US treasury rates is also adding
pressure to equities as the 10 yr. US treasury yield rose to 2.36% earlier
today. With a light data calendar today, there’s not much to distract Wall Street
from the downward pressure seen early in this session. In corporate news, a
deal between AOL and Verizon has made front page headlines, as Verizon reportedly
agreed to buy the internet content company for $4.4 billion, sending shares of
AOL surging 18% in premarket. Across the pond, European stocks are getting
battered on the bond yield story while the Greece debt talks are also putting
strain on European equities. Throughout Asia markets finished mixed. Oil, gold
and other precious metals are higher today while the US dollar index is down.
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