Anxiety over rising Treasury yields ahead of FOMC…Netflix↓·Warner↑ [New York Stock Market Briefing]

With two days remaining until the year's final Federal Open Market Committee (FOMC) meeting that determines the U.S. benchmark interest rate, the New York stock market fell in tandem.

On the 8th (local time) at the New York Stock Exchange, the Dow Jones 30 Industrial Average closed at 47,739.51, down 215.48 points (0.45%) from the previous trading day. The Standard & Poor's (S&P) 500 index fell 23.89 points (0.35%) to 6,846.51, and the tech-focused Nasdaq index fell 32.22 points (0.14%) to 23,545.90 at the close.

Although the market is effectively expecting a rate cut at this FOMC, analysts say stock prices fell due to the rise in U.S. Treasury yields.

CNBC said, "Despite the high likelihood of a rate cut this week due to concerns about next year's inflation trend and the Fed's maintenance of an accommodative stance, the yield on the benchmark (10-year U.S. Treasury) showed an upward trend."

On the day, the 2-year U.S. Treasury yield rose 0.016% percentage points to 3.587%, the 10-year rose 0.03% percentage points to 4.171%, and the 30-year rose 0.018% percentage points to 4.811%.

MarketWatch analyzed, "As the perception grew that the central bank may need to gradually lower rates in the future to firmly curb inflation, Treasury yields rose, and the 10-year Treasury yield shot up to its highest level since the end of September."

Meanwhile, the market is in a mood that the December rate cut is a sure thing. If a 0.25% percentage point cut is decided at the year's final FOMC held on the 9~10, the benchmark interest rate is expected to move from 3.75~4.0% to 3.5~3.75%.

According to the Chicago Mercantile Exchange (CME) FedWatch, the market-implied probability of a December rate cut priced into interest rate futures is about 90%.

By stock, Nvidia rose 1.72% and Broadcom rose 2.78%. Nvidia was interpreted to have risen on news that the U.S. government is likely to allow exports of the AI chip H200 to China. After the market closed, exports of the H200 to China were approved.

Alphabet fell more than 2%, and Tesla fell 3.39%.

Netflix succeeded in acquiring Warner Bros. Discovery but fell more than 3% on the possibility that it could be blocked by antitrust law. U.S. President Donald Trump said he would personally get involved in Netflix's deal.

Paramount Skydance, which competed with Netflix for the Warner Bros. acquisition, declared a hostile takeover of Warner Bros., igniting the stocks. Paramount's stock surged more than 9% and Warner Bros. also rose 4.41%.

No Jeong-dong Hankyung.com reporter dong2@hankyung.com