[New York Stock Market] All Indexes Declining as Oil Prices and Treasury Yields Rise

International Oil Prices Rise by Around 1%

Amid rising anxiety over news that Iran has launched an airstrike on Kuwait, international oil prices and U.S. Treasury yields rose, causing all three major U.S. stock indexes to decline on June 3 (local time).

As of 9:56 a.m. on the same day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 287.88 points (0.56%) at 51,019.91 compared to the previous trading day. The S&P 500, which focuses on large-cap stocks, dropped 34.48 points (0.45%) to 7,575.30, while the tech-focused Nasdaq fell 173.14 points (0.63%) to 26,920.76.

As international oil prices climbed following reports of Iran's airstrikes on Kuwait, risk aversion increased. On this day, Kuwait's Ministry of Defense stated in an official announcement, "Due to Iran's invasion, several drones targeted and attacked Terminal 1 of Kuwait International Airport." The incident resulted in one death and 63 injuries.

Subsequently, U.S. Central Command announced that U.S. forces had intercepted Iranian ballistic missiles and drones, and stated, "In response to Iran's attempts to attack across the Middle East, we conducted a self-defense strike on Qeshm Island."

Following these events, West Texas Intermediate (WTI) crude oil for the U.S. was trading at $94.77 per barrel on the New York Mercantile Exchange, up 1.08% from the previous session. On the ICE Futures Exchange, Brent crude was up 1.20% from the previous session at $97.19 per barrel.

As international oil prices rose, U.S. Treasury yields also increased. The yield on the 10-year U.S. Treasury note climbed by 3.0 basis points (1bp = 0.01 percentage point) from the previous session to 4.487%. The yield on the 30-year U.S. Treasury note was up 2.7 basis points to 4.994%.

Shares of U.S. private equity firms became a source of market anxiety after Partners Group, a Swiss-based private equity company, announced it would set investor withdrawal limits for one of its funds. KKR fell by 5%, while Blackstone dropped by 3%.

Megan Shue, Head of Investment Strategy at Wilmington Trust, said, "The rally has been extremely strong as a result of a combination of optimism and robust demand for the AI investment cycle," adding, "Now, we are entering the summer lull. Trading activity may slow somewhat, and a great deal of geopolitical risk still exists."

She went on to say, "It doesn't mean the market has to rebound sharply, but at this point, I think it's reasonable for it to pause or dip slightly and for volatility to increase somewhat as we head into the summer."

This content was produced with the assistance of AI translation services.