# Wall Street ends lower as bond yields jump on growth concerns
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-18
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global growth concerns weigh on Wall Street as Ukraine war
Meta Description: Stocks on Wall Street closed lower amidst concerns over global growth, driven by World Bank's cut in forecast and China's economic slowdown.
URL: https://financedigest.com/wall-street-ends-lower-as-bond-yields-jump-on-growth-concernshtml

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By Pete Schroeder

WASHINGTON (Reuters) – Wall Street ended the day lower in a choppy trading day on Monday, while U.S. Treasury yields [jumped as investors juggled strong](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") earnings with what Russia’s invasion of Ukraine could mean for global growth.

A significant cut to [global growth expectations from the World Bank](https://www.financedigest.com/global-shares-jump-but-bank-whack-a-mole-not-over.html "Global shares jump but bank ‘whack-a-mole’ not over"), paired with March weakness in China’s latest economic numbers injected some pessimism into U.S. markets, which [opened Monday following](https://www.financedigest.com/pioneering-mobile-tech-facility-opens-following-chancellors-call-to-make-uk-a-world-leader-in-5g.html "Pioneering mobile tech facility opens following chancellor’s call to make UK a world leader in 5G") a holiday-shortened previous week.

But a strong quarterly earnings report from Bank of America offset some of that concern, as [investors prepared for more major corporate earnings reports](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") this week.

The Dow Jones Industrial Average ended down 0.11%, while the S&P 500 dipped 0.02% and the Nasdaq Composite slid 0.14%.

Markets were closed in Australia, [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") and many parts of Europe for the Easter holiday.

The [World Bank announced it was cutting its global growth](https://www.financedigest.com/bridge-the-gaps-in-big-data-and-cross-into-a-world-of-growth.html "Bridge the gaps in Big Data – and cross into a world of growth") forecast for 2022 by nearly a full percentage point due to the impact of Russia’s invasion of Ukraine. The organization now expects [economic growth](https://www.financedigest.com/addressing-the-credit-gap-to-unlock-economic-growth-in-africa.html "Addressing the credit gap to unlock economic growth in Africa") of 3.2% this year, down from a prior 4.1% forecast.

China also reported that its economy [slowed in March](https://www.financedigest.com/uk-recruiters-slow-pace-of-pay-growth-in-march-rec-survey-shows.html "UK recruiters slow pace of pay growth in March, REC survey shows") as consumption, real estate and exports were hit hard, worsening an outlook already weakened by COVID-19 curbs and the Ukraine war.

[“Stocks continued to search for sustained upside momentum amid](https://www.financedigest.com/stocks-euro-gain-amid-divergent-fed-ecb-rate-hike-outlooks.html "Stocks, euro gain amid divergent Fed, ECB rate hike outlooks") high inflation readings, interest rates on the rise, and dashed hopes for a cease fire in Ukraine,” said Chris Larkin, managing director at E\*TRADE.

OIL, [BOND YIELDS](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause") SURGE

[Oil prices closed over 1% higher](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher"), boosted by concerns over tight global supply amid the Ukraine crisis.

Those [concerns were amplified after Libya’s National Oil](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") Corp said a “painful wave” of closures were impacting its facilities, offsetting any concerns about reduced demand from a locked down China.

With global supplies now so tight, even the most [minor disruption is likely to have an outsized impact on prices,”](https://www.financedigest.com/edfs-minority-shareholders-scramble-to-challenge-nationalisation-price.html "EDF’s minority shareholders scramble to challenge nationalisation price") said Jeffrey Halley, analyst at brokerage OANDA.

Brent crude settled 1.3% higher at $113.16 a barrel after earlier hitting $114.84, its highest [since March](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") 28\. U.S. crude [ended up 1.2%](https://www.financedigest.com/hp-to-cut-about-12-jobs-by-end-of-fiscal-2025.html "HP to cut about 12% jobs by end of fiscal 2025") at $108.21 per barrel.

The [looming prospect of aggressive interest rate](https://www.financedigest.com/wall-st-indexes-mixed-treasury-yields-tick-up-as-higher-rates-loom.html "Wall St indexes mixed, Treasury yields tick up as higher rates loom") hikes from the Federal Reserve helped push U.S. [Treasury yields](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") to three-year highs while boosting other safe havens.

The [Fed is now expected to hike rates](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") by 50 basis points at its May and June meetings, at least, as it looks to contain rapid inflation. Fed funds futures traders are expecting the Fed’s benchmark [rate to rise](https://www.financedigest.com/shares-slip-yields-rise-as-u-s-data-sparks-rate-hike-concerns.html "Shares slip, yields rise as U.S. data sparks rate hike concerns") to 1.28% in June and to 2.67% next February, from 0.33% now.

Despite nascent signs that inflation could be easing and hawkish Fed bets being trimmed, a 50bps [rate hike for May looks all but locked in,” wrote Deutsche Bank](https://www.financedigest.com/bank-of-england-set-to-hike-to-4-as-rate-peak-looms.html "Bank of England set to hike to 4% as rate peak looms") analysts in a note.

The benchmark 10-year note was last 2.8373%, after previously hitting 2.884% earlier on Monday, the highest since December 2018.

Concerns over [economic fallout helped push gold prices](https://www.financedigest.com/sony-hikes-ps5-price-on-economic-pressures-rising-rates.html "Sony hikes PS5 price on economic pressures, rising rates") to a one-month high Monday, with safe-haven spot gold last up 0.14% to $1,977.35 an ounce.

The [dollar also got a boost](https://www.financedigest.com/dollar-soft-as-china-reopening-hopes-boost-risk-sentiment.html "Dollar soft as China reopening hopes boost risk sentiment") as a safe haven, with the dollar index, which tracks the greenback versus a basket of six currencies, was up 0.47%.

(Reporting by Pete Schroeder; Editing by Hugh Lawson and Marguerita Choy)


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