[New York Stocks] US Long-term Treasury Yields Rise... Dow Falling

International Oil Prices Fall Across the Board

As U.S. Treasury yields rise, the three major indices on the New York Stock Exchange showed mixed trends in early trading on October 5 (local time).

As of 10:10 a.m. on the New York Stock Exchange, the Dow Jones Industrial Average was trading at 51,040.51, down 136.45 points (0.27%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, rose 23.88 points (0.30%) to 7,746.60, while the tech-heavy Nasdaq index increased by 165.63 points (0.61%) to reach 27,356.49.

This day, the rise in Treasury yields is weighing on the market. The yield on the benchmark U.S. 10-year Treasury note climbed 2 basis points from the previous trading day to 5.30%, while the yield on the 30-year note increased 3 basis points to 5.663%. Both yields have surged to their highest levels in recent years. This reflects concerns that the Federal Reserve may keep interest rates high for an extended period, due to continued inflationary pressures.

Market attention is focused on the September Federal Open Market Committee (FOMC) minutes, which are scheduled to be released on October 7. The Fed raised the benchmark interest rate by 0.25 percentage points last month. Investors are expected to examine the minutes for insights into the background of the rate hike decision and committee members' views on future monetary policy.

However, concerns over an additional rate hike this month have somewhat eased after last week's employment data came in weaker than expected. The slowdown in job growth has provided some relief to the market, which had been under pressure from the sharp rise in Treasury yields.

International oil prices are declining. On the ICE Futures Exchange, Brent crude for December delivery is currently trading at $101.60 per barrel, down 0.6% from the previous session. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery is trading at $89.75 per barrel, down 1.4% from the previous session.

Despite geopolitical instability and high interest rates, there are some predictions that the stock market can remain resilient. Beata Mansi, strategist at Citi, stated that global equities have risen by about 12% so far this year, approaching all-time highs, and expressed the view that the stock market's resilience will be maintained even in the face of macroeconomic shocks.

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