US stocks dropped for a second day of the short trading week on Wednesday, with the Dow Jones Industrial Average declining by more than 300 points as Treasury yields continued to spike.
An auction of seven-year Treasury notes was met with weak demand, marking the third sale of US government bonds this week to spark fears of oversupply amid forecasts of higher-for-longer interest rates.
The sell-off in the bond market comes ahead of two important data points for investors as they try to assess the path of interest rates for the rest of this year. On Thursday, first-quarter GDP will see its first revision, with expectations for growth to be lower than initially reported for the first three months of the year.
More importantly, on Friday, the Bureau of Economic Analysis will publish the Federal Reserve's preferred inflation measure. Price increases as measured by the personal consumption expenditures index are expected to be on par with March figures, rising 2.7%, according to economists' estimates. However, a surprise to either the upside or downside could have a big impact on stocks and the broader market.
An auction of seven-year Treasury notes was met with weak demand, marking the third sale of US government bonds this week to spark fears of oversupply amid forecasts of higher-for-longer interest rates.
The sell-off in the bond market comes ahead of two important data points for investors as they try to assess the path of interest rates for the rest of this year. On Thursday, first-quarter GDP will see its first revision, with expectations for growth to be lower than initially reported for the first three months of the year.
More importantly, on Friday, the Bureau of Economic Analysis will publish the Federal Reserve's preferred inflation measure. Price increases as measured by the personal consumption expenditures index are expected to be on par with March figures, rising 2.7%, according to economists' estimates. However, a surprise to either the upside or downside could have a big impact on stocks and the broader market.