Stocks open mixed after 10-year Treasury briefly hit 4%

US stocks struggled for direction early Wednesday after the 10-year Treasury yield – a key economic pillar – briefly rose beyond 4%, hitting a closely watched level of the worst bond sale in decades.

The S&P 500 rose a modest 0.1%, while the Dow Jones Industrial Average added 60 points, or about 0.2%. The Nasdaq Composite Index is down 0.2%.

Apple shares (AAPL) fell more than 3% at the start of trading after that Report that the tech giant is backing away from its plans To ramp up production of new iPhones this year after product demand failed to meet expectations.

Analysts at Morgan Stanley were skeptical about the news, calling the reports “more bark than a bite,” and noting that “the upside from the better-than-expected iPhone 14 Pro/Pro Max is likely to be offset by the weak initial iPhone 14/14 Plus. Demand does not Means any downside to his iPhone charging expectations.”

Elsewhere on the company front, DocuSign shares (DOCU) rebounded 3.5% at the open after the company said it expects to restructure and reduce its workforce by about 9%.

Biogen (Bahrain Islamic Bank) Shares are up nearly 40% on Wednesday after a Successful trial of its experimental drug for Alzheimer’s disease. News that the test slowed the progression of Alzheimer’s disease by 27% compared to a placebo in a clinical trial also boosted shares of drug companies like Eli Lilly (LLY), which increased by more than 7%.

Big moves across fixed income and currency markets were in focus Wednesday morning as central bank concerns and recession kept investors on edge. On the bond front, the benchmark 10-year Treasuries temporarily exceeded 4%, the highest level since 2008, before retreating to around 3.8%.

“U.S. Treasury price volatility has long been reaching statistically extraordinary levels right now, just as it did in June 2022,” DataTrek’s Nicholas Colas said in a morning note. “US stocks bottomed out that month once yields stabilized.”

NEW YORK, NY - SEPTEMBER 13: Traders work on the floor of the New York Stock Exchange during afternoon trading on September 13, 2022 in New York City.  US stocks opened lower today and closed significantly lower with the Dow Jones dropping more than 1,200 points after the release of an inflation report that showed prices rose more than expected last month.  The Consumer Price Index from the Bureau of Labor Statistics showed prices rose 8.3% over the past year, with economists expecting an 8.1% increase.  (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NY – SEPTEMBER 13: Traders work on the floor of the New York Stock Exchange during afternoon trading on September 13, 2022 in New York City. (Photo by Michael M. Santiago/Getty Images)

Meanwhile, the rise in the US dollar index continued to shake global currency markets. The euro fell to its weakest level since 2008, briefly dropping below $0.96 for the first time since 2002.

Also across the Atlantic, the Bank of England said it would make temporary purchases of long-term British government bonds, Emergency intervention to help stabilize its currency.

“Should the dysfunction in this market persist or worsen, there will be a material risk to financial stability in the UK,” Bank of England officials said in a statement. Wednesday morning statement. “This would lead to an unjustified tightening of financing conditions and reduce the flow of credit to the real economy.”

Back in the US, some Wall Street giants have turned bearish in equities, signaling the risk of a global recession as central banks take the most aggressive monetary action in decades.

BlackRock’s Strategists (BLKThe Investment Institute said policy makers are underestimating the economic pain needed to bring inflation down quickly.

“The markets haven’t priced that, so we avoid most stocks,” said a team led by Jean Boivin He said in a note earlier this week.

Goldman Sachs (p), the number one investment bank on Wall Street, cut stocks to reduce the weight in its global allocations over the next three months, citing rising real returns as a headwind.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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