The major US stock indices are trading sharply lower at the start of the trading day. The number of winners to losers is in favor of the losers by a 9 to 1 ratio.

Yields are higher with the 10 year yield above 4.5% at 4.581%. Although the NASDAQ index Treated to a new record high yesterday helped by Nvidia shares rising by around $75, the broad S&P index was unchanged and has not been able to approach its record from last week. The Dow Industrial average continued its decline after reaching and closing above a 40,000 last week (at 40,003). Since then it's been down, down, down (currently trades at 38,461.93 – down over 1500 points from the 40,000 high).

Also impacting is most of the earnings are behind us.

The snapshot of the markets currently shows:

  • Dow Industrial Average average -390.94.4 -1.01% at 38461.93
  • S&P index -41.72 points or -0.79% at 5264.31
  • NASDAQ index -123.86 points or -0.73% at 16896.02.

The small-cap Russell 2000 is trading down -27.40 points or -1.33% at 2039.44.

Taking a look at the US debt market, yields are higher with a steeper yield curve (although it is still negative).

  • Two year yield 4.960%, +0.3 basis points
  • 5-year yield 4.604%, +3.0 basis points
  • 10 year yield 4.587%, +4.6 basis points
  • 30-year yield 4.717%, +6.2 basis points.

The U.S. Treasury will auction off 7-year notes at 1 PM ET. That will complete the coupon auctions for the week. Yesterday they auctioned off two and 5- year notes with tepid demand