NEW YORK: Wall Street stocks fell early on Tuesday as markets lashed out at a dovish OECD forecast and bond yields picked up.
While raising its growth forecast for 2023, the Organization for Economic Co-operation and Development cut its 2024 growth forecast to 2.7 percent from 2.9 percent in the previous forecast.
Factors cited by the OECD include disappointing activity in China and drag from high interest rates, following the central bank’s actions to curb inflation.
Wall Street stalls sharply as chipmakers move
About 20 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 34,567.96.
The benchmark S&P 500 fell 0.2 percent to 4,443.77, while the tech-rich Nasdaq Composite Index declined 0.5 percent to 13,644.64.
Yields on the 10-year US Treasury note rose as markets awaited the Federal Reserve’s interest rate decision Wednesday.
Adam Sarhan of 50 Park Investments said the market’s “sideways” behavior in recent weeks has been “tremendous,” considering that bond yields have increased along with oil prices.
“You have a lot of headwinds, which are going to move stocks down and down in a big way,” Sarhan said. “When the market can’t react to different stories, all things being equal, that’s a bad thing.”