Technology Leads Stocks Lower

Monday, stocks fell 1.9% in Asia, 2.5% in Europe, and 0.4% in the U.S. on 9B shares traded. The 10-Year U.S. Treasury bond yield rose 2% to close at 3.11.

Tuesday, stocks gained 0.8% in Asia but lost 0.7% in Europe, and 1.2% in the U.S. on 11B shares traded. Precious metals fell 1% and their miners were down twice that amount. The Dow, NASDAQ, S&P 500, and NYSE indices closed below their respective 32,000, 12,000, 4000, and 15,000 benchmarks. Apple closed below 160, and IBM ended below 130.

Wednesday, stocks ended nearly unchanged in Asia but declined 1.2% in Europe, and 0.9% in the U.S. on 11B shares traded. Precious metals lost 1%.

Thursday, stocks lost 2.2% in Asia and 1.7% in Europe but were down just slightly in the U.S. on 11B shares traded. The 10-Year U.S. Treasury bond yield rose 4% to close at 3.26. Precious metals fell 1% while their miners lost three times that amount.

Friday, stocks rose 1.9% in Europe but fell 0.8% in Asia and 0.6% in the U.S. on 10B shares traded. The 10-Year U.S. Treasury bond yield fell 2% to close at 3.19. Precious metals gained 1% while their miners moved up three times that amount.

For the week, the Fed balance sheet declined 24B to $8.83T. While this weekly roll-off is in the range of weekly roll-offs promised for the future, it failed to compensate for the slower-than-promised roll-off rate through August. They ended the first phase of three months with 38% less roll-off than promised. Here’s an article that speculates that the Fed cannot roll-off its balance sheet in line with their stated rate.

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