U.S. stock benchmarks opened firmly lower Monday as fears about rapidly rising rates overshadowed expectations for strong corporate results in coming days. The U.S. bond market is closed in observance of Columbus Day, or Indigenous Peoples’ Day. The Dow Jones Industrial Average DJIA, -0.20% fell 120 points, or 0.5%, at 26,330, while the S&P 500 index SPX, -0.10% slumped by 0.4% at 2,874, while the Nasdaq Composite Index COMP, -0.28% gave up 0.7% at 7,735. All three benchmarks are on track to post a third straight decline. A jump in government bond yields over the past several sessions has perhaps heralded a new phase in post-crisis markets that have enjoyed a protracted period of ultra low yields, with a jump in yields forcing a reassessment of assets considered risky, like stocks, against the perceived risk of equities. The 10-year Treasury note yield TMUBMUSD10Y, +1.37% on Friday was at 3.23%, marking its highest level since 2011. Meanwhile, Shares of Tesla Inc. TSLA, +1.05% were gaining after the electric-car maker Sunday night said it has achieved its goal of making the Model 3 sedan the safest car ever built.
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Dow poised for third straight drop as stock market resumes yield-fueled fall
U.S. stocks sink in early Monday trade, putting the main benchmarks in position to fall for a third consecutive session as fears about rapidly rising rates overshadowed expectations for strong corporate results in coming days.
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