US equities and Treasuries fell on Thursday as investors digested another round of disappointing tech earnings and new signs of labor-market resiliency that could support another rate hike this year.
The Nasdaq 100, which is heavily weighted towards technology, fell 2.3%, with Netflix suffering its biggest drop of the year following a disappointing revenue forecast. Tesla fell after its second-quarter profit fell. The yield on 10-year Treasuries rose 10 basis points as traders priced in a quarter-point rate hike beyond the Federal Reserve's meeting next week, owing to an unexpected drop in weekly initial jobless claims.
The losses are putting a stop to this year's blistering stock rally, which has seen the S&P 500 rise 18% and the Nasdaq 100 rise 41% in the face of a shaky economic outlook during the Fed's aggressive tightening campaign.
Wheat prices rose on Wednesday as tensions in the Black Sea escalated between Russia and Ukraine. Profits at Goldman Sachs GroupTech had dropped. Early Thursday, China increased its support for the yuan amid a flurry of rhetoric aimed at boosting business confidence.
