[New York Stocks] 10-Year Yield Surges Past 5%... Nasdaq Down Over 1%

10-Year Treasury Yield Breaks 5% for First Time Since 2023
WTI Surges to $103, Brent Oil Hits $108
AI-Related Stocks Including Nvidia Plunge

On September 14 (local time), all three major U.S. stock indexes were down on the New York Stock Exchange as the yield on the 10-year U.S. Treasury note surged past 5% and artificial intelligence (AI)-related stocks plummeted. The sharp rise in international oil prices also dampened investor sentiment, as it heightened the probability of further rate hikes by the Federal Reserve (Fed).

As of 10:43 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was trading at 52,308.788, down 264.51 points (0.50%) from the previous session. The S&P 500 Index, which focuses on large-cap stocks, fell 61.50 points (0.80%) to 7,595.48, while the tech-heavy Nasdaq Composite lost 294.85 points (1.12%) to stand at 26,038.68.

New York Stock Exchange. New York (USA) – Special Correspondent Yoonju Hwang

There was a nervous atmosphere in the market regarding the climb in Treasury yields. As of 10:21 a.m., the yield on the 10-year U.S. Treasury was 5.012%. This is the first time since October 2023—and only the second time since just before the 2007 global financial crisis—that the yield has surpassed the 5% mark.

The 5% yield on 10-year Treasuries is considered a significant psychological threshold in the financial markets. A yield above 5% reduces the relative attractiveness of risk assets like equities and may sharply raise borrowing costs for companies.

The spike in international oil prices is also putting pressure on the equity markets. Concerns over supply disruptions have resurfaced after Saudi Arabia halted operations of a key oil pipeline that bypasses the Strait of Hormuz.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery was up 3.75% to $103.81 per barrel. Meanwhile, Brent crude for November delivery on the ICE Futures Exchange was up 4.06% at $108.83 per barrel.

The surge in oil prices could reignite inflation, adding to the Fed’s tightening pressures. According to the CME FedWatch Tool, the rate futures market is currently factoring in about an 88% probability that the Federal Open Market Committee (FOMC) will raise the benchmark interest rate at its meeting scheduled for September 15–16.

By sector, AI-related stocks are seeing pronounced weakness. Nvidia plunged 3.50%, Broadcom fell 4.68%, AMD dropped 6.38%, Intel tumbled 6.24%, and Marvell Technology sank 7.29%.

The slump in AI stocks has been attributed to comments from Dario Amodei, CEO of Anthropic, who argued that the pace of developing advanced AI models should be slowed. In a CBS interview released the previous day, Amodei said that while there is a need to control the development speed for AI safety, the "most difficult dilemma" is if China does not cooperate.

In an opinion piece published on September 12, Amodei also insisted that AI companies should slow innovation in their highest-performing models in light of safety risks. As concerns grow that AI development may escape human control, investor sentiment toward tech stocks overall has weakened.

Investor sentiment in the sector also took a hit when Sam Altman, CEO of OpenAI, ruled out the possibility of an initial public offering (IPO) this year. In an interview on September 12, Altman stated that pursuing an IPO this year "would not be a wise decision."

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