U.S. Stock Indexes Drop More Than 3%

Rick Winters, vice president at Adviser Investments, has the market analysis for Wednesday, October 10. All major U.S. stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. indexes fell sharply, with the Dow Jones Industrial Average, S&P 500 and NASDAQ down 3.2%, 3.3% and 4.1%, respectively. A number of investor concerns—rising bondA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. yieldsYield is a measure of the income on an investment in relation to the price. There are several ways to measure yield. The current yield of a security is the income over the past year (either dividends or coupon payments) divided by the current price., inflation and interest rates, mid-term election strife and ongoing tariff negotiations—contributed to today’s broad sell-off. Tomorrow, we’ll see updated economic data from the U.S. Bureau of Labor Statistics’ Consumer Price Index and the Labor Department’s jobless claims report.