Dow Falls 500 Points as Treasury Yields Hit 24-Year High
Listen to the story
The Dow fell 500 points on Monday. The Dow is a group of big U.S. companies. It shows how the stock market is doing.
The fall happened because of Treasury yields. These are payments on U.S. government loans. The yield on the 10-year Treasury went up. It is now at its highest point in 24 years.
When yields go up, stocks often go down. This is because loans become more expensive. Companies must pay more money to borrow.
The S&P 500 and Nasdaq also fell. These are other ways to measure the stock market. The Nasdaq has many tech companies.
Before this fall, tech stocks had a good rally. A rally means prices go up for some time.
Oil prices also went up. This can make things more expensive for companies and people.
Many investors are watching the stock market closely. They want to know what will happen next.
Vocabulary7 words
- Dow
- a group of 30 big U.S. companies used to check the stock market
- Treasury yields
- money the U.S. government pays back on loans it takes
- S&P 500
- a list of 500 big U.S. companies used to check the stock market
- Nasdaq
- a stock market with many technology companies
- tech
- short word for technology; computers and related companies
- rally
- a time when prices go up
- oil prices
- the cost of buying oil
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Quiz
Answer key
1. 500 2. It rose to its highest in 24 years 3. True
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Dow fell _____ points on Monday. The Dow is a group of big U.S. companies. It shows how the stock market is doing.
The fall happened because of Treasury yields. These are payments on U.S. government loans. The yield on the 10-year Treasury went up. It is now at its highest point in _____ years.
When yields go up, stocks often go _____. This is because loans become more expensive. Companies must pay more money to borrow.
The S&P 500 and Nasdaq also fell. These are other ways to measure the stock market. The Nasdaq has many tech companies.
Before this fall, tech stocks had a good rally. A rally means prices go _____ for some time.
Oil prices also went up. This can make things more _____ for companies and people.
Many _____ are watching the stock market closely. They want to know what will happen next.
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