[New York Stock Exchange] 10-Year Treasury Yield Hits 4.81% Before Retreating...Major Indices Rise Across the Board

WTI Falls Below $90 per Barrel
ADP Private Sector Employment Rises Only by 38,000

On September 2 (local time), the three major indices of the U.S. stock market in New York are all trading higher. This comes as the yield on the 10-year U.S. Treasury note hit an intraday high and then partially retreated, while international oil prices also reverted to a downward trend. The risk appetite of investors for riskier assets appears to be recovering somewhat, as the sharp increases in Treasury yields and international oil prices—which had been exerting downward pressure on the market—have stalled.

As of 10:27 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average stands at 53,157.46, up 390.58 points (0.74%) from the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, is up 39.03 points (0.51%) at 7,670.47, while the tech-heavy Nasdaq Index has risen 113.13 points (0.43%) to 26,212.60.

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

The greatest burden on the market remains Treasury yields. On this day, the 10-year U.S. Treasury yield surged to 4.814% during intraday trading, marking the highest level since November 2023. Subsequently, as international oil prices pulled back from their gains, the sell-off in Treasuries also eased somewhat, bringing yields down from their peaks.

Recently, the global bond market has reflected both concerns over a resurgence of inflation due to rising international oil prices and the potential for prolonged monetary tightening by central banks. As yields on key government bonds—including U.S. Treasuries—have risen rapidly, the pressure on global equity markets has increased.

International oil prices surged after the United States conducted additional military airstrikes against Iran the previous day, reigniting military tensions around the Strait of Hormuz. Concerns that a disruption in crude oil supply could lead to higher energy prices—subsequently fueling inflation in the U.S. and raising the likelihood of further interest rate hikes by the Federal Reserve—contributed to selling pressure in the bond market.

As oil prices fell somewhat today, inflation concerns eased, and Treasury yields retreated from their intraday highs. As a result, both stocks and bonds—which had recently weakened together—rebounded to some extent.

Thierry Wizman, Global FX & Rates Strategist at Macquarie Group, explained to CNBC that "high interest rates are acting as a headwind for the stock market." He noted that when interest rates rise, the discount rate used to calculate the present value of future corporate earnings increases, thereby exerting downward pressure on the price-to-earnings ratio (PER).

However, the upward momentum in international oil prices—which has shaken financial markets recently—has subsided somewhat today. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery is trading at $89.57 per barrel, down 0.73% from the previous session. Brent crude for November delivery on the ICE Futures Exchange is at $94.29 per barrel, a decline of 0.33% from the previous session.

Comments by John Williams, President of the Federal Reserve Bank of New York, also helped to ease market concerns about inflation. In an interview with CNBC, Williams said that there is evidence inflation continues to slow as the impact of tariffs has weakened, adding that the recent rise in energy prices has not yet spread broadly to prices for other services.

The private employment data released today shows that while the labor market has not deteriorated rapidly, the pace of job growth is gradually slowing. According to U.S. employment data firm Automatic Data Processing (ADP), private sector employment in the United States increased by 38,000 jobs last month compared to the previous month. This represents the lowest growth since January and falls short of the expert forecast of 47,000 compiled by Dow Jones.

Previously, at the Jackson Hole Economic Symposium last week, Federal Reserve Chairman Kevin Warsh acknowledged risks in some parts of the labor market, but also assessed that, overall, the market remains consistent with full employment.

Accordingly, analysts in the market believe that the Fed's policy focus is likely to remain on inflation, rather than employment, for the time being. Following Chairman Warsh's recent hawkish remarks, expectations for additional interest rate hikes have strengthened on Wall Street, causing increased volatility in the bond market.

Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, told Bloomberg, "The labor market is currently quite stable," adding, "Since the Fed has a strong case for having achieved its employment objectives, it can now focus more on inflation."

By sector, Dell Technologies is up 4.34% from the previous trading day after raising its annual revenue outlook by $25 billion. The outlook for robust demand for servers used in artificial intelligence (AI) supported the stock price. Broadcom is scheduled to announce its earnings after the market closes today.

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