Wall Street Slides as 10-Year Treasury Yield Hits 24-Year High and Oil Tops $100

Major US stock indexes fell on Thursday as fourth-quarter trading opened under pressure from surging bond yields and oil prices, with the benchmark 10-year Treasury yield touching a fresh 24-year high of nearly 5.35 percent, according to market data reported by Dow Jones.

The Dow Jones Industrial Average slipped about 0.5 percent in morning trading, while the S&P 500 and the Nasdaq Composite each declined roughly 0.2 to 0.3 percent, per Dow Jones figures. The 10-year yield, a reference rate for mortgages, corporate bonds and other loans, rose to its highest level since 2002 early in the session before easing back below 5.3 percent, according to the Wall Street Journal.

A reading of US manufacturing activity came in slightly lower than expected, but the same report signaled a jump in prices paid by producers, while a separate report showed a surprise increase in August construction spending, reinforcing the theme of a resilient American economy, the Journal reported. That resilience is keeping bond traders braced for further Federal Reserve moves, with LSEG data pricing a roughly 37 percent chance of an October rate hike.

Oil compounded the inflation worries. Brent crude, the international benchmark, climbed 3.6 percent to above $101 a barrel, and US crude rose toward $93, with Reuters reporting that Chinese refiners had suspended October fuel exports to prioritise domestic supplies.

On the corporate front, Accenture shares surged about 18 percent after better-than-expected results, while chipmaker Micron reported stronger-than-forecast quarterly revenue on surging AI memory demand. The CBOE volatility index touched a two-week high. Investors now await Friday’s September payrolls report for the next signal on the economy’s direction.

Sources

• Investopedia — Stock Market Today: Indexes Slip to Open October, Q4 Trading
• The Wall Street Journal — Stocks Fall as Bond Selloff Eases
• Reuters — Dow Futures Hit Three-Month Low as Yields Surge, Micron Earnings Offer Support