[New York Stock Market] Micron, AMD Plunge... S&P 500, Nasdaq Down

Nasdaq Falls on Sharp Decline in Semiconductor Stocks
U.S. Long-Term Treasury Yields Decline
Micron, AMD and Others All Drop
Market Eyes Jackson Hole and PCE

Although long-term U.S. Treasury yields have turned lower, selling pressure is concentrated on semiconductor stocks, leading to a mixed early session for the three major U.S. stock indices on August 24 (local time) in the New York stock market.

As of 9:54 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is trading at 53,429.12, up 152.11 points (0.29%) from the previous session. The large-cap-focused S&P 500 Index is down 22.22 points (0.29%) to 7,652.15, while the tech-heavy Nasdaq Index is down 233.05 points (0.89%) at 25,947.40.

New York Stock Exchange. New York, USA - Special Correspondent Yoonju Hwang

On this day, the weakness in semiconductor stocks is weighing on the market. Notable declines include Micron Technology down 6.76%, AMD down 3.58%, Broadcom down 1.71%, and Intel down 4.86%. The selling trend has also appeared across technology stocks related to artificial intelligence (AI). Lumentum is down 8.22%, SanDisk is down 10.80%, Seagate Technology is down 6.50%, and Corning is down 4.73%.

In contrast, U.S. Treasury yields are declining following reports that the Treasury Department may use the Treasury General Account (TGA) as a source of funding for long-term Treasury buybacks. The 10-year U.S. Treasury yield is down about 4 basis points (1bp=0.01 percentage point) compared to the previous trading session, standing at 4.70%. The 30-year yield, which had surged to over 5.3% last week — its highest in about 20 years — is also moving around 5.23%, down about 4 basis points.

Previously, U.S. Treasury Secretary Scott Bessent stated in a CNBC interview last week that the department plans to at least double the size of its Treasury buybacks in the coming months and that the amount could exceed the previously announced $400 million per auction. Long-term yields plunged right after the initial announcement but rebounded soon after, so the market-stabilizing effect proved short-lived.

Recently, not only in the United States but also in major countries such as Japan, France, and Germany, long-term bond yields have risen to the highest levels in years, adding to downward pressure on global equity markets. There are also concerns that if the war between the United States and Iran continues for an extended period, international oil prices could remain elevated, further increasing inflationary pressures and dampening investor sentiment.

Peter Boockvar, Chief Investment Officer (CIO) at OnePoint BFG Wealth Partners, noted that if the Treasury increases short-term issuance to lower long-term rates, "the U.S. government's interest expenses will become even more closely linked to the Federal Reserve's federal funds rate movements." He added, "Fed Chair Kevin Warsh may not mention this directly in his speech this week, but it has become a new variable to consider going forward."

The market is paying close attention to Chairman Warsh's scheduled remarks at this week's Jackson Hole Symposium. Warsh is set to deliver a speech at the Fed's annual economic policy symposium in Jackson Hole, Wyoming, on August 28. Economic data, particularly inflation indicators, is also a key variable. On August 26, July's Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, will be released.

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