Day Traders Diary

5/29/19

The major averages continued their decline as the 10-year Treasury yield fell to its lowest level since September 2017. The Dow Jones Industrial Average dropped 221.36 points to 25,126 after declining as much as 400 points. The S&P 500 slid 0.7% and Nasdaq Composite declined by 0.8%. A portion of the yield curve further inverted as 3-month Treasury bills last yielded 2.36%, well above the 10-year rate. A yield curve inversion is seen by traders as a potential sign that a recession is in the horizon.

Bank shares fell along with yields. Bank of America and J.P. Morgan Chase both slid more than 0.2%. Citigroup dipped 0.1%. Shares of the three banks had dropped more than 1% earlier in the day.

The S&P 500 broke below 2,800, a key technical level watched by traders. The broad index also traded around its lowest level since late March.