[New York Stock Market] All Major Indices Falling Amid Rising Oil Prices and Treasury Yields

Qualcomm Rises on Announcement of AI Infrastructure Collaboration with Amazon

On September 8 (local time), all three major U.S. stock indexes are trading lower amid concerns over a sharp jump in international oil prices and rising Treasury yields. Investor sentiment has weakened due to worries that the ongoing military conflict between the United States and Iran, coupled with climbing energy prices, could reignite inflationary pressures.

As of 9:45 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is down 501.32 points (0.94%) from the previous session at 52,912.93. The S&P 500 Index, which is weighted toward large-cap stocks, is trading at 7,691.33, down 27.27 points (0.35%). The technology-heavy Nasdaq Composite is at 26,410.21, down 96.77 points (0.37%).

New York Stock Exchange. New York (USA) = Special Correspondent Yoonjoo Hwang

Volatility in international oil prices has increased as the Trump Administration intensifies economic pressure on Iran, and U.S. maritime blockades disrupt Iran's crude oil exports.

Oil prices are trending higher. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery is trading at $93.19 per barrel, up 1.90% from the previous session. At the ICE Futures Exchange, Brent crude for November delivery is trading at $98.13 per barrel, up 1.12% from the previous close.

Rising oil prices are acting as a factor pushing up U.S. Treasury yields. This is because the surge in energy prices, if it spreads across the broader economy, heightens fears that the Federal Reserve (Fed) may keep interest rates elevated for longer or consider additional rate hikes.

The yield on the U.S. 10-year Treasury note climbed to its highest level since November 2023 last week, while the 2-year yield, which is sensitive to monetary policy, hit its highest mark since January 2025.

Dan Coatsworth, market analyst at AJ Bell, noted, "Brent crude has reached its highest level in six weeks." He added, "News that Iran and Oman are nearing an agreement to manage the passage of certain vessels through the Strait of Hormuz actually underscores Iran’s control over the waterway."

He further anticipated that the key focus of the market will be whether the upcoming U.S. inflation reports this week show that rising energy prices are expanding into broader inflationary pressure.

The Producer Price Index (PPI) and Consumer Price Index (CPI), both due for release later this week, are expected to weigh heavily on rate projections. If inflation data come in higher than expected, or if heightened tension in the Middle East causes oil prices to climb further, expectations for rate hikes may increase further.

Renewed trade tensions between the United States and Canada are also weighing on stocks. Starting today, Canada is imposing retaliatory tariffs on about $20 billion worth of U.S. products. U.S. President Donald Trump warned the previous day that Canadian aircraft manufacturer Bombardier will not be allowed to sell products in the U.S. market unless it manufactures in the United States.

Ed Yardeni, President of Yardeni Research, commented, "Central bank meetings around the world in the coming weeks will test the stability of equity markets." He further added, "It remains to be seen whether rising global bond yields are being caused by stronger-than-expected economic growth, persistent high inflation, or concerns about fiscal and debt crises."

By sector, Qualcomm shares are surging 4.52% in early trade after announcing a partnership with Amazon Web Services (AWS) to support the development of AI infrastructure.

The two companies plan to jointly develop semiconductors for AI inference and high-speed optical connectivity solutions. Qualcomm has also granted Amazon warrants to purchase up to 25 million shares of its common stock.

Bloom Energy is up more than 9.21% ahead of its inclusion in the S&P 500, scheduled for September 21. Nike, which is being removed from the S&P 100, is down 0.22% from the previous session. However, Nike will remain part of the S&P 500 Index.

Meanwhile, the market is closely watching the Federal Open Market Committee (FOMC) meeting of the Fed, scheduled for September 15-16. According to the CME FedWatch tool, the interest rate futures market is pricing in about a 60% chance that the Fed will raise its benchmark rate by 0.25 percentage points at this meeting.

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