Wall Street Overview
The Dow Jones Industrial Average finished lower by 19 points, or 0.08%,on Wednesday, Feb. 7. The S&P 500 declined by 0.50% and the Nasdaq slumped 0.89%.
Treasury yields rose on news that congressional leaders reached an agreement on a two-year budget deal that would prevent a government shutdown. The agreement raises federal spending by almost $300 billion over two years above limits imposed by a 2011 budget law, according to The Wall Street Journal.
Bond yields, the trigger for last week's selling, continued to creep higher, with U.S. 10-year Treasury bonds at 2.838% after falling to as low as 2.65% during Tuesday's equity market chaos.
Chicago Fed President Charles Evans said Wednesday the central bank could hold off on lifting interest rates until at least mid-2018 as prices in the U.S. rise sluggishly.
The Cboe Volatility Index, better known as the VIX, fell 24% on Wednesday to 22.68 after spiking past the 50 mark for the first time since 2009 in Tuesday's historic session. Those moves followed the biggest one-day rise on record -- a jump of 115% on Monday, Feb. 5, -- that sent futures prices for the S&P 500 on a wild two-day ride that saw prices swing in range of 4.75%, the most extreme market movements in more than two years.
Snap Inc. (SNAP) beat quarterly earnings expectations for the first time in its brief life as a public company and the stock jumped 47% on Wednesday to $20.65, well above its initial public offering price of $17, which it hasn't reached in months.
Steve Wynn, the chairman and CEO of Wynn Resorts Ltd. (WYNN) , resigned those positions on Tuesday amid sexual misconduct allegations. The Wall Street Journal reported in late January that several women said Wynn harassed or assaulted them and that one case led to a multi-million dollar settlement. The Las Vegas casino mogul, who founded the company, has denied the allegations.
The stock gained nearly 9%.
Chipotle Mexican Grill Inc. (CMG) topped quarterly earnings expectations but the stock was downgraded to sell from hold at Stifel Nicolaus. Shares fell 10%.