Dow sinks 470 points as 10-year treasury pulls back from one-year high

Investors redeemed the Nasdaq

U.S. equity markets ended mixed Friday as the 10-year yield pulled back from its highest level in a year.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34200.67 +164.68 +0.48%
SP500 S&P 500 4185.47 +15.05 +0.36%
I:COMP n.a. n.a. n.a. n.a.

The Dow Jones Industrial Average closed down 475 points, or 1.51%, while the S&P 500 slid 0.48% and the Nasdaq Composite rose 0.56%, clawing back from Thursday's beating which was the worst since October.

10-Year Treasury in focus 

The mixed session came as the 10-year yield fell 5.4 basis points to 1.459%. The recent rise in bond yields, to a one-year high of 1.61%, had caused panic among investors worried about a return of inflation. Strategists have suggested the 10-year’s move above the 1.5% level, which equates to the dividend yield of the S&P 500, would put more pressure on equities.

Ticker Security Last Change Change %
JNJ JOHNSON & JOHNSON 162.34 +1.65 +1.03%

Looking at stocks, Johnson & Johnson’s one-shot COVID-19 vaccine is expected to receive approval from a Food and Drug Administration panel, paving a way for distribution to begin next week.

Ticker Security Last Change Change %
GME GAMESTOP 154.69 -1.75 -1.12%

GameStop Corp. shares slumped after soaring 142% over the previous two sessions. However, other stocks that have been subject to heightened volatility, like AMC Entertainment Holdings Inc., Bed Bath & Beyond Inc. and Koss Corp.,  experienced more muted trading activity.

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 9.33 -0.57 -5.76%
BBBY BED BATH & BEYOND, INC. 25.52 +0.98 +3.99%
KOSS KOSS 18.95 -0.23 -1.20%

Elsewhere, Twitter Inc. outlined plans to double revenue by 2023 with features such as tipping and paid subscriptions to “super follow,” or access exclusive content, from some accounts.

Ticker Security Last Change Change %
TWTR TWITTER, INC. 70.12 -1.59 -2.22%

In earnings, Salesforce.com Inc. reported earnings and revenue that outpaced expectations but raised its full-year revenue forecast to below what Wall Street had been anticipating.

Ticker Security Last Change Change %
CRM SALESFORCE.COM, INC. 232.04 -1.15 -0.49%
DKNG DRAFTKINGS 57.98 +0.50 +0.87%

DraftKings Inc. reported pro-forma revenue, rose 98% year over year in the three months through December, supported by a favorable sports calendar and strong customer engagement. The sports-betting platform raised its 2021 revenue forecast to between $900 million and $1 billion, up from $750 million to $800 million.

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In commodities, West Texas Intermediate crude oil slid $2.03 to $61.50 per barrel and gold sank $4.630 to $1,728.10 an ounce.

In Europe, Britain’s FTSE 100 was trading lower by 2.3% while France’s CAC 40 and Germany’s DAX 30 were weaker by 1.39% and 0.65%, respectively.

Markets were hit hard across Asia with Japan’s Nikkei 225 plunging 3.99%, Hong Kong’s Hang Seng index losing 3.64% and China’s Shanghai Composite declining 2.12%.