Daily Markets Briefing: STI down 1.1%

Wall Street's weakness could hurt gains today.

The Straits Times Index (STI) ended 35.81 or 1.1% lower at 3,231.59.

The FTSE ST Mid Cap Index fell 6.01% whilst the FTSE Small Cap Index dipped 1.35%.

The top active stocks were DBS, which fell 0.19%, Singtel, which dipped 0.01%, OCBC, which decreased 0.10%, UOB, which slipped 0.24%, and YZJ, with a 0.01% fall.

According to OCBC Investment Research, the S&P 500 and the Nasdaq booked their worst sessions in about three months as a powerful climb in government bond yields rippled through Wall Street, forcing a broad reassessment of assets perceived as risky, like stocks.

Nine out of eleven S&P 500 industries ended lower, with Information Technology (-1.79%) and Consumer Discretionary (-1.72%) leading the declines whilst Financials (0.71%) and Utilities (0.55%) gained.

"The weakness on Wall Street overnight amid the surge in bond yield could dampen local sentiment today," OCBC Investment Research said.