[New York Stock Market] U.S. 10-Year Yield Peaks and Eases... All Major Indexes Close Higher

Buying Interest in Tech and Semiconductor Stocks
Limited Upside in International Oil Prices

On September 2 (local time), the recent surge in U.S. Treasury yields hit an intraday high before pulling back, leading all three major New York stock indexes to end the session higher. As the increase in August ADP private-sector employment slowed more than market expectations and the steep climb in international oil prices paused, concerns over inflation and additional tightening by the Federal Reserve (Fed) eased somewhat.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow) gained 295.07 points (0.56%) from the previous trading day to close at 53,061.95. The S&P 500, which focuses on large-cap stocks, rose 35.13 points (0.46%) to end at 7,666.60, while the tech-heavy Nasdaq Composite surged by 118.05 points (0.45%) to finish at 26,217.82.

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

On this day, risk appetite in the market partially recovered as the surge in U.S. Treasury yields abated. The benchmark 10-year Treasury yield soared intraday to 4.818%, the highest since November 2023, before paring gains and closing at 4.793%.

Recently, U.S. Treasury yields have surged, driven by concerns over inflation resulting from rising international oil prices, expectations of additional rate hikes by the Fed, and heightened caution over the United States' massive fiscal deficit. There is growing media analysis warning that if the 10-year yield approaches 5%, it could significantly burden stock valuations as well as corporate and household borrowing costs.

International oil prices extended gains due to escalating conflict between the U.S. and Iran, but the rise was limited compared to the recent sharp surge. U.S. President Donald Trump stated that the recently resumed military operations against Iran "will not last too long."

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery closed at $91.01 per barrel, up 0.88% from the previous session. On the ICE Futures Exchange, Brent crude for November delivery finished up 1.04% at $95.63 per barrel.

Jay Hatfield, CEO of Infrastructure Capital Advisors, told CNBC, "The key driver is oil prices," evaluating that the stock market's rebound was due to expectations that the uptrend in oil prices may have peaked.

The partial recovery of crude oil shipments through the Strait of Hormuz also eased some market concerns. Chris Wright, U.S. Secretary of Energy, stated that more than 17 million barrels of oil passed through the Strait of Hormuz during a single day on August 31. This is the highest level since the war with Iran began in February. However, the number of vessel transits still falls below recent averages, so concerns over supply disruptions have not been completely resolved.

The employment data released that day pointed to a slowdown in the labor market. According to ADP, U.S. private-sector companies added 38,000 jobs in August compared to the previous month, falling short of market expectations and marking the smallest increase since January.

As the surge in Treasury yields was limited, bargain-buying emerged mainly among major tech stocks and AI-related stocks, which had previously declined sharply. Notable gainers included Nvidia (up 3.21%), Micron Technology (up 2.43%), Intel (up 1.21%), SK hynix ADR Boost (up 2.61%), and Alphabet (up 0.63%). In contrast, AMD (down 0.55%) and Seagate (down 0.99%) closed lower.

Dell Technologies soared 15.76% from the previous session after raising its full-year revenue and profit forecasts on the back of strong demand for artificial intelligence (AI) computing.

The market is now focused on the August employment report from the U.S. Department of Labor, set for release on September 4. If a slowdown in employment is confirmed, it could ease the burden of additional tightening by the Fed. However, with high oil prices reigniting inflationary pressures, uncertainty surrounding monetary policy is likely to persist.

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