{"id":18805,"date":"2025-08-21T18:19:00","date_gmt":"2025-08-21T22:19:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/08\/21\/stocks-settle-lower-as-bond-yields-rise-on-hawkish-fed-comments\/"},"modified":"2025-08-21T18:19:00","modified_gmt":"2025-08-21T22:19:00","slug":"stocks-settle-lower-as-bond-yields-rise-on-hawkish-fed-comments","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/08\/21\/stocks-settle-lower-as-bond-yields-rise-on-hawkish-fed-comments\/","title":{"rendered":"Stocks Settle Lower as Bond Yields Rise on Hawkish Fed Comments"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) on Thursday closed down by -0.40%,\u00a0the Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.46%.\u00a0 September E-mini S&#038;P futures (ESU25) fell -0.40%, and September E-mini Nasdaq futures (NQU25) fell -0.45%.\u00a0<\/p>\n<p>Stock indexes settled lower on Thursday, with the Dow Jones Industrials falling to a 1-week low.\u00a0 Concerns about consumer spending weighed on stocks after Walmart reported weaker-than-expected Q2 EPS.\u00a0 Also, higher bond yields undercut stocks, with the 10-year T-note yield climbing +4 bp to 4.33% on hawkish Fed comments and stronger-than-expected manufacturing and existing home sales reports.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-ZUo\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-ZUo')) {             googletag.display('js-dfp-tag-ZUo');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>     <span>Join 200K+ Subscribers: <\/span> Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.  <\/p>\n<p>\u00a0<\/p>\n<p>Thursday\u2019s weekly US jobless claims report showed a weaker labor market.\u00a0 US weekly initial unemployment claims rose by +11,000 to a 2-month high of 235,000, showing a weaker labor market than expectations of an increase to 225,000.\u00a0 Weekly continuing claims rose +30,000 to a 3.75-year high of 1.972 million, higher than expectations of 1.960 million, showing people out of work are finding it harder to land a new job.<\/p>\n<p>The US Aug Philadelphia Fed business outlook survey fell -16.2 to -0.3, weaker than expectations of 6.5.<\/p>\n<p>The US Aug S&P manufacturing PMI unexpectedly rose +4.5 to a 3-year high of 53.3, better than expectations of a decline to 49.7.<\/p>\n<p>US July existing home sales unexpectedly rose +2.0% m\/m to 4.01 million, stronger than expectations of -0.3% m\/m to 3.92 million.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-I9g\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-I9g')) {             googletag.display('js-dfp-tag-I9g');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Kansas City Fed President Jeffrey Schmid said inflation risks are marginally higher than risks to the labor market, and \u201cmodestly restrictive\u201d monetary policy is still appropriate.\u00a0<\/p>\n<p>Cleveland Fed President Beth Hammack said, \u201cWe have inflation that\u2019s too high and has been trending upwards over the past year.\u00a0 With the information I have, if the FOMC meeting were tomorrow, I would not see a case for reducing interest rates.\u201d<\/p>\n<p>On the geopolitical front, US Vice President Vance said negotiations over ending Russia\u2019s war in Ukraine are focused on security guarantees for Ukraine and territory Russia wants to control, including Ukrainian territory that it currently isn\u2019t occupying, as the US tries to broker a peace deal between the two countries.\u00a0The US is working to set up a meeting between President Putin and Zelensky, and if that meeting goes well, President Trump said he\u2019ll look to follow up with a trilateral summit with the leaders.\u00a0 The outcome of the negotiations could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.\u00a0<\/p>\n<p>The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. \u00a0On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve\u2019s annual symposium at Jackson Hole, Wyoming.\u00a0<\/p>\n<p>Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware.\u00a0 The change went into effect on Monday and did not exclude goods already in transit. \u00a0Last Friday, Mr. Trump said, \u201cI\u2019ll be setting tariffs next week and the week after on steel and on, I would say chips \u2013 chips and semiconductors, we\u2019ll be setting sometime next week, week after.\u201d Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US.\u00a0 Mr. Trump also mentioned 200% or 300% tariffs on chips.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-8zo\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-8zo')) {             googletag.display('js-dfp-tag-8zo');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November.\u00a0 On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India\u2019s purchases of Russian oil.\u00a0 On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced \u201cwithin the next week or so.\u201d According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.<\/p>\n<p>Federal funds futures prices are discounting the chances for a -25 bp rate cut at 72% at the September 16-17 FOMC meeting, down from 93% last Thursday.\u00a0 The markets are discounting the chances at 49% for a second -25 bp rate cut at the following meeting on October 28-29.<\/p>\n<p>Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y\/y, much better than the pre-season expectations of +2.8% y\/y and the most in four years, according to Bloomberg Intelligence. \u00a0With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.\u00a0<\/p>\n<p>Overseas stock markets on Thursday settled mixed.\u00a0 The Euro Stoxx 50 closed down -0.19%. \u00a0China\u2019s Shanghai Composite rallied to a new 10-year high and closed up +0.13%. \u00a0Japan\u2019s Nikkei Stock 225 fell to a 1-week low and closed down -0.65%.<\/p>\n<p><strong>Interest Rates<\/strong><\/p>\n<p>September 10-year T-notes (ZNU5) on Thursday closed down -10 ticks, and the 10-year T-note yield rose +3.7 bp to 4.328%.\u00a0Sep T-notes were under pressure Thursday on hawkish Fed comments.\u00a0 Kansas City Fed President Jeffrey Schmid said \u201cmodestly restrictive\u201d monetary policy is still appropriate due to inflation risks, and Cleveland Fed President Beth Hammack said she does not favor cutting interest rates. \u00a0T-notes added to their losses today after the Aug S&P manufacturing PMI expanded by the most in three years and after July existing home sales unexpectedly increased.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-nJo\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-nJo')) {             googletag.display('js-dfp-tag-nJo');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>T-notes saw support from Fed-friendly US economic news that showed weekly jobless claims rose more than expected to a 2-month high, and the Aug Philadelphia Fed business outlook survey fell more than expected.<\/p>\n<p>Fed Governor Lisa Cook said she intends to remain at the Fed despite calls from President Trump for her to resign over allegations that she committed mortgage fraud.\u00a0 If Cook is fired or resigns, Mr. Trump could appoint another Fed Governor who favors his lower interest rate policies.<\/p>\n<p>European government bond yields on Thursday moved higher.\u00a0 The 10-year German bund yield rose +4.0 bp to 2.757%.\u00a0The 10-year UK gilt yield rose +5.7 bp to 4.729%.<\/p>\n<p>The Eurozone Aug S&P manufacturing PMI unexpectedly rose +0.7 to 50.5, stronger than expectations of a decline to 49.5 and the fastest pace of expansion in 3 years.\u00a0 The Aug composite PMI unexpectedly rose +0.2 to a 15-month high of 51.1, stronger than expectations of a decline to 50.6.<\/p>\n<p>The Eurozone Aug consumer confidence index fell -0.8 to a 4-month low of -15.5, weaker than expectations of no change at -14.7.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-mY0\"  class=\"btf-bodymidpagetwothirdswidth-5\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-mY0')) {             googletag.display('js-dfp-tag-mY0');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Swaps are discounting the chances at 3% for a -25 bp rate cut by the ECB at the September 11 policy meeting.<\/p>\n<p><strong>US Stock Movers<\/strong><\/p>\n<p>Walmart (WMT) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 adjusted ESP of 68 cents, weaker than the consensus of 74 cents.\u00a0 Costco Wholesale (COST) also closed down more than -2% on the news to lead losers in the Nasdaq 100.\u00a0<\/p>\n<p>SharkNinja Inc. (SN) closed down -3% after Chairman Wang sold 5 million shares in an overnight registered block trade between $116 and $118 per share.\u00a0<\/p>\n<p>Gilead Sciences (GILD) closed down more than -2% after Reuters reported that CVS Health declined to add the company\u2019s HIV prevention shot to its drug coverage lists.<\/p>\n<p>Airline stocks were under pressure Thursday after crude oil prices rallied to a 2-week high, which boosts jet fuel costs and lowers airlines\u2019 profits.\u00a0 As a result, United Airlines Holdings (UAL) and Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) and Alaska Air Group (ALK) closed down more than -1%.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-eyU\"  class=\"btf-bodymidpagetwothirdswidth-6\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-eyU')) {             googletag.display('js-dfp-tag-eyU');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Maplebear Inc (CART) closed down more than -2% after Wedbush downgraded the stock to underperform from neutral with a price target of $42.\u00a0<\/p>\n<p>Monday.com Ltd (MNDY) closed down more than -1% after Bank of America Global Research downgraded the stock to neutral from buy.<\/p>\n<p>Packaging stocks rose Thursday after Barclays said the announced closures of International Paper plants will reduce US containerboard capacity by about 2.5%.\u00a0 As a result, Packaging Corporation of America (PKG)\u00a0closed up more than +6%, Smurfit WestRock (SW) closed up more than +4%, and International Paper (IP) closed up more than +2%.<\/p>\n<p>PDD Holdings (PDD) closed up more than +4% to lead gainers in the Nasdaq 100 on bullish optimism for Chinese stocks after the Shanghai Composite rallied to a 10-year high today.<\/p>\n<p>Nordson (NDSN) closed up +3% after reporting Q3 sales of $741.5 million, stronger than the consensus of $722.3 million.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-ObM\"  class=\"btf-bodymidpagetwothirdswidth-7\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-ObM')) {             googletag.display('js-dfp-tag-ObM');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Hewlett-Packard Enterprise (HPE) closed up more than +3% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $28.\u00a0<\/p>\n<p>Dayforce (DAY) closed up more than +2% after Thoma Bravo agreed to buy the company for $12.3 billion, or about $70 a share.<\/p>\n<p>Humana (HUM) closed up more than +1% after RBC Capital Markets raised its price target on the stock to $322 from $283.<\/p>\n<p><strong>Earnings Reports(8\/22\/2025)<\/strong><\/p>\n<p>BJ\u2019s Wholesale Club Holdings Inc (BJ), Buckle Inc\/The (BKE), New Fortress Energy Inc (NFE), Ubiquiti Inc (UI).<\/p>\n<p><i>     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.          For more information please view the Barchart Disclosure Policy      here. <\/i><\/p>\n<p>\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-wL4\"  class=\"btf-bodymidpagetwothirdswidth-8\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-wL4')) {             googletag.display('js-dfp-tag-wL4');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p> More news from Barchart <\/p>\n<ul>\n<li>Newegg Stock Keeps Climbing. Should You Buy NEGG in August 2025?<\/li>\n<li>Should You Buy the Post-Earnings Pop in TJ Maxx Stock?<\/li>\n<li>Worried About a Market Crash? Here Are 3 Stocks That \u2018Big Short\u2019 Star Michael Burry Loves Here.<\/li>\n<li>This Penny Stock Is Betting Big on Meme Crypto BONK. Should You Buy SHOT Shares Here?<\/li>\n<\/ul>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) on Thursday closed down by -0.40%,\u00a0the Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.46%.\u00a0 September E-mini S&#038;P futures (ESU25) fell -0.40%, and September E-mini Nasdaq futures (NQU25) fell -0.45%.\u00a0 Stock indexes settled lower on Thursday, with the Dow [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[18],"tags":[],"class_list":["post-18805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/18805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=18805"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/18805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/18806"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=18805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=18805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=18805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}