US major indices close lower, but it could have been worse

<p>The major US <a href="https://www.forexlive.com/terms/i/indices/">indices</a> are all closing lower with the Dow Industrial Average leading the way with a decline of near 1%. However, things could have been worse.</p><ul><li>The Dow industrial average was down as much as 517.18 points</li><li>the S&amp;P index was down as much as -61.76 point</li><li>the <a href="https://www.forexlive.com/terms/n/nasdaq/">NASDAQ</a> and the exposed down as much as 224.40 points</li></ul><p>By the close, those levels are more bearable (but still lower). The final numbers show:</p><ul><li>Dow industrial average fell -365.94 points or -1.07% at 33922.73</li><li>S&amp;P index fell -35.15 points or -0.79% at 4411.66</li><li>NASDAQ fell -112.62 points or -0.82% at 13679.03</li></ul><p>Markets were spooked by stronger ADP jobs report and also the ISM nonmanufacturing service PMI. Two-year yield is trading around 5% but was as high as 5.118%. The 10-year yield is at 4.037%, up 9.2 basis points. It high yield rate reached 4.081%.</p><p>Comments from Dallas Fed President Lorie Logan also tilted the bias for rates and stocks lower. </p><p>Logan expressed that she would have been comfortable with a rate hike in June. She believes that additional rate hikes are likely needed and expressed concern about whether inflation will subside quickly enough. Logan attributed the decision to pause in June to the challenging and uncertain economic environment. She also noted that the process of rebalancing the economy has been slower than anticipated and expressed skepticism about the delayed impact of previous rate hikes by the Fed. Logan suggests that the housing market may have reached its lowest point, but warns that a rebound in the housing sector could pose a threat to controlling inflation. She concludes by stating that a rate hike later in the month is already certain, regardless of the upcoming Consumer Price Index (CPI) report.</p>

This article was written by Greg Michalowski at www.forexlive.com.