Stocks Dropped as Bond Yields Extended Declines

Stocks dropped in the early trading on Wednesday as slumping bond yields sparked concerns of weaker economic growth. The Dow Jones Industrial Average late dropped 139.44 points, or 0.55%, to 25,208.33. The S&P 500 declined 11.35 points, or 0.6%, to 2,791.04. The Nasdaq Composite fell 27.29 points, or 0.36%, to 7,580.06.

Oil futures prices dropped Wednesday, extending choppy trading that has marked recent sessions as risk-on markets, including stocks, took a fresh hit. West Texas Intermediate crude for July delivery fell $1.31, or 2.2%, at $57.83 a barrel. July Brent fell $1.77, or 2.5%, at $68.34 a barrel.

U.S. Treasuries extended a rally Wednesday as risk aversion dominated markets, pushing yields sharply lower. The U.S. 10-year yield broke below 2.25% to the lowest level since September 2017. The spread between the U.S. three-month and 10-year rates declined to negative 14 basis points as of 9:41 a.m. ET.

The U.S. banking sector recorded $60.7 billion in profits in the first quarter of 2019, an increase in profit levels from the year prior, according to data from the Federal Deposit Insurance Corporation.