# Stocks, bond yields, oil fall as risk appetite fades
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-06
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global Stocks Tumble Amid Bond Yields Drop and Tech
Meta Description: Global stock prices fall sharply amid bond yield drops, tech crackdown, and Fed expectations. Is the winning streak over? Stay updated with OANDA.
URL: https://financedigest.com/stocks-bond-yields-oil-fall-as-risk-appetite-fadeshtml

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By Alwyn Scott

NEW YORK (Reuters) – Global stock prices fell sharply Tuesday – after some indexes briefly touched new highs – as tumbling bond yields, lower crude prices, China’s latest tech crackdown and expectations of a hawkish Fed report on Wednesday waved red flags at investors.

With risks percolating, “it seems like the winning streak has snapped,” said Edward Moya, senior market analyst for the Americas at OANDA.

Around 1840 GMT, the Dow Jones Industrial Average was down 252.69 points, or 0.73 percent, to 34,533.66.

The broad S&P 500 index was off 16.98 points, or 0.39 percent, at 4,335.36. The tech-heavy Nasdaq Composite slipped 1.87 points, or 0.01 percent, to 14,637.46.

Bond [yields also were lower as concerns about a revving global economy](https://www.financedigest.com/stocks-yields-fall-data-suggests-u-s-economy-cooling.html "Stocks, yields fall; data suggests U.S. economy cooling") eased. The yield on 10-year U.S. Treasury notes was down 6.5 basis points to 1.367%.

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/pasted-image-1625556400903-450x338-1736838220680-compressed.jpg)

A month ago, [yields were widely expected to rise](https://www.financedigest.com/global-equities-gain-as-rising-bond-yields-pressure-gold.html "Global equities gain, as rising bond yields pressure gold") in the second half, possibly reaching 2% by year-end. Now, the consensus [thinks yields may have peaked for the year](https://www.financedigest.com/more-than-a-third-of-people-think-cash-will-become-obsolete-in-the-next-25-years.html "More Than a Third of People Think Cash Will Become Obsolete in the Next 25 Years"). (Graphic: [Oil prices and global inflation](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data"), https://fingfx.thomsonreuters.com/gfx/mkt/dgkvlrjorvb/Pasted%20image%201625556400903.png)

[Oil pulled back on Tuesday from its recent rally after OPEC+ producers canceled a meeting due to clashes over plans to increase supply to meet rising global demand](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high").

The crude spike was based largely on posturing, since suppliers are still going to increase output, Moya said. “Demand is just too strong,” he added.

[Investors will watch for minutes](https://www.financedigest.com/shares-choppy-u-s-yields-fall-as-investors-digest-fed-minutes.html "Shares choppy, U.S. yields fall as investors digest Fed minutes") from the U.S. Federal Reserve’s Federal [Open Market](https://www.financedigest.com/italy-open-to-selling-down-mps-stake-on-market-if-terms-buyers-are-right-sources.html "Italy open to selling down MPS stake on market if terms, buyers are right – sources") Committee (FOMC), due Wednesday. The [market expects them to confirm](https://www.financedigest.com/puma-confirms-full-year-outlook-flags-market-volatility.html "Puma confirms full-year outlook, flags market volatility") a hawkish – or anti-inflation – tilt, and a benign readout could trigger a rally.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, abandoned talks Monday after the United Arab Emirates rejected an eight-month extension to [output curbs](https://www.financedigest.com/french-sugar-makers-to-start-output-early-as-energy-curbs-loom.html "French sugar makers to start output early as energy curbs loom"). \[O/R\]

Some OPEC+ sources said a new meeting would take place in [coming days](https://www.financedigest.com/have-multi-asset-funds-had-their-day-or-is-their-best-yet-to-come-new-whitepaper-from-camradata-explores.html "Have multi-asset funds had their day or is their best yet to come? New whitepaper from CAMRADATA explores") and would lead to a boost in August.

Crude [prices earlier reached $77.66 – the highest level since](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") October 2018 – and U.S. crude [hit its highest](https://www.financedigest.com/uk-inflation-hits-40-year-record-highest-in-g7.html "UK inflation hits 40-year record, highest in G7") since late 2014 at $76.90 a barrel. [Oil is up about 50% this year and over 385% since last year’s COVID-driven slump](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar").

TECH TROUBLES

Chinese [ride-hailing company Didi Global Inc shares slumped more than 20% after Chinese regulators ordered the company’s app](https://www.financedigest.com/ride-hailing-app-cabify-raises-110-million-for-expansion-in-latam-spain.html "Ride-hailing app Cabify raises 0 million for expansion in LatAm, Spain") taken down days after its $4.4 billion listing on the New York Stock Exchange.

Other U.S.-listed Chinese [e-commerce firms](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit"), including Alibaba Group, Baidu Inc and JD.com, fell 3.5% to 4.6%.

[Hong Kong](https://www.financedigest.com/screening-of-winnie-the-pooh-horror-film-cancelled-in-hong-kong.html "Screening of ‘Winnie the Pooh’ horror film cancelled in Hong Kong") marked its sixth day of losses and China’s CSI300 dipped to an almost two-month-low \[.SS\], after the Cyberspace Administration of China ordered an investigation into Didi.

[China will step](https://www.financedigest.com/china-steps-up-easing-cuts-lending-benchmarks-to-revive-faltering-economy.html "China steps up easing, cuts lending benchmarks to revive faltering economy") up supervision of Chinese firms listed offshore, and improve regulation of cross-border data flow and security, Xinhua quoted the cabinet as saying.

(Additional reporting by Marc Jones in London, Scott Murdoch in Singapore; Editing by Alison Williams, John Stonestreet, Alexander Smith and Cynthia Osterman)


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