[New York Stock Exchange] 30-Year U.S. Treasury Yield Hits Highest Since 2002... Major Indices Close Lower

International Oil Prices Plunge as Red Sea Exports Resume

New York Fed President: "No Need to Rush Further Tightening"

As the yield on the 30-year US Treasury bond hit its highest intraday level since 2002, all three major indices on the New York stock market closed lower on September 29 (local time).

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell by 131.59 points (0.26%) to close at 51,349.92. The S&P 500 Index, focused on large-cap stocks, dropped by 12.85 points (0.17%) to 7,670.84, while the Nasdaq Composite Index, with a focus on technology stocks, slid by 22.84 points (0.09%) to end at 26,797.54.

On this day, the market faced downward pressure as yields on 30-year US Treasuries reached their highest levels since 2002. The 30-year Treasury yield climbed above 5.6% during the session—the highest since June 2002. The benchmark 10-year Treasury yield rose by 4 basis points (1bp = 0.01 percentage point) to 5.281%. In late trading, the yield on the 10-year bond hovered near its highest level since 2007.

Analysts said that concerns about long-term inflation, increased US government spending, and large-scale corporate borrowing to expand investment in artificial intelligence (AI) have converged, prompting investors to demand higher rewards for holding long-term bonds.

Jeff Klingelhofer, Managing Director and Portfolio Manager at Aristotle Pacific Capital, told CNBC, "The market expects inflation to come down, but the process will be accompanied by demand destruction," adding, "This is why stock prices are falling while yields are rising."

International oil prices ended sharply lower. Markets focused on the news that Saudi Arabia resumed crude oil exports from the Red Sea.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery closed at $89.38 per barrel, down 3.48% from the previous session. On the ICE Futures Exchange, Brent crude for November delivery finished at $102.59 per barrel, a 2.56% decrease. WTI futures are at their lowest level since August 31, while Brent crude is at its lowest since September 22.

However, despite the drop in oil prices, concerns about energy costs and inflation stemming from the prolonged war in the Middle East have yet to subside.

By sector, financial stocks led the decline. Goldman Sachs fell by about 1%, while JPMorgan Chase, Morgan Stanley, and Bank of America also declined. The financial sector exchange-traded fund (ETF), XLF, closed down about 0.5%.

In the market, expectations remain that the Federal Reserve (Fed) may proceed with additional interest rate hikes. John Williams, President of the Federal Reserve Bank of New York, stated at an event at the University at Buffalo that one more rate hike this year may be appropriate to curb inflation. However, he said there is no need to rush further action, given that the Fed has already raised its policy rate this month. Following his remarks, market bets on an October rate hike weakened somewhat.

Fed Governor Michael Barr also reaffirmed his existing view that another rate increase may be necessary. He said, "Price stability is crucial to supporting the sustainable and solid growth needed for full employment."

Economic indicators released today also failed to lift investor sentiment. The number of job openings in the US fell to a five-month low, indicating companies are becoming more cautious about hiring. However, layoffs remained low. The consumer confidence index dropped to its lowest level since 2014.

Brett Kenwell, an analyst at eToro, commented that the recent labor market is experiencing a "low-hire, low-fire" trend. He said, "Persistent inflation and high living costs have pushed consumer sentiment to its lowest level in years," adding, "Whether this will translate into an actual decline in consumption is a key factor to watch in upcoming corporate earnings."

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