PiCK
Stocks End Slightly Lower as Treasury Yields Climb; Dow Falls 0.26% [New York Market Briefing]
Summary
- The three major New York stock indexes closed slightly lower as U.S. Treasury yields climbed.
- The U.S. 30-year Treasury yield rose as high as 5.612% during the session, reaching its highest level since June 2002.
- Federal Reserve officials maintained the need for additional rate hikes, but Williams said one 25-basis-point move would be enough, pushing the probability of a rate increase down to 90.9%.
Forecast Trend Report by Period
30-Year Yield Tops 5.6% During Session
Highest Since June 2002
U.S. stocks ended slightly lower on Sept. 29 as rising Treasury yields continued to weigh on sentiment.
The Dow Jones Industrial Average fell 131.59 points, or 0.26%, to 51,349.92 at the close on the New York Stock Exchange. The S&P 500 lost 12.85 points, or 0.17%, to 7,670.84, while the tech-heavy Nasdaq Composite slipped 22.84 points, or 0.09%, to 26,797.54.
Higher long-term Treasury yields appeared to pressure equities.
The 30-year Treasury yield climbed to 5.612% during the session, its highest level since June 2002. The 10-year Treasury yield traded at 5.265%, marking its eighth move this month to a fresh high not seen since 2007.
Oil prices fell, apparently influenced by news that Saudi Arabia had resumed crude exports via the Red Sea.
Reuters reported that Saudi Aramco, the state oil company, notified customers a day earlier of shipping schedules through Yanbu port. News also emerged that the United States and Iran each held talks with mediators on Sept. 28.
On ICE Futures Europe, November Brent crude settled at $89.38 a barrel, down 3.48% from the previous session. On the New York Mercantile Exchange, October West Texas Intermediate crude settled at $102.59 a barrel, down 2.56%.
Several Federal Reserve officials spoke publicly on Sept. 29, including St. Louis Fed President Alberto Musalem, Chicago Fed President Austan Goolsbee, New York Fed President John Williams and Fed Governor Michael Barr.
Most maintained a hawkish stance, arguing that further rate increases are needed. Williams, however, said one more 25-basis-point increase this year would be sufficient, helping ease bond yields somewhat.
According to CME Group's FedWatch Tool, the probability implied by federal funds futures of at least a 25-basis-point rate increase by December fell to 90.9% from 95% a day earlier.
Lee Su, Hankyung.com reporter 2su@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.