1 day ago
Wall Street Slips as Oil Prices and Treasury Yields Rise
US stock markets fell on Wednesday.
Oil prices rose by more than 3% as tensions between the United States and Iran increased.
Higher oil prices and strong US business activity pushed government bond yields higher.
The 10-year Treasury yield reached its highest level since 2007.
Investors also became more likely to expect an interest-rate increase by the Federal Reserve in October.
Alphabet and Amazon shares fell, while Meta Platforms shares rose after favorable reactions to its Muse AI assistant.
Expedia and Airbnb shares dropped sharply because investors worried AI could hurt some travel businesses.
The main stock indexes all ended lower, although energy companies gained.
The S&P 500 fell 0.65%, the Nasdaq dropped 1.07%, and the Dow declined 0.54%.
Oil prices rose more than 3% as tensions increased between the United States and Iran.
The 10-year Treasury yield reached its highest level since 2007, while traders raised bets on an October Federal Reserve rate hike.
Alphabet and Amazon declined, while Meta Platforms gained after a positive reception for its Muse AI assistant.
Travel stocks Expedia and Airbnb each fell more than 6% amid concerns about AI’s potential impact on consumer businesses.
- Who
- US investors, companies including Alphabet, Amazon, Meta Platforms, Expedia and Airbnb, the Federal Reserve, and officials from the United States and Iran.
- What
- Wall Street declined as oil prices and Treasury yields rose, while investors assessed geopolitical tensions, economic data, interest-rate expectations and AI-related developments.
- Where
- US financial markets, including the New York Stock Exchange and Nasdaq.
- When
- Wednesday, September 23, during afternoon trading.
- Why
- Rising oil prices, higher bond yields, expectations of further Federal Reserve rate hikes, US-Iran tensions and concerns about AI’s effect on some businesses weighed on stocks.
Key facts
- S&P 500
- Down 0.65% to 7,714.35
- Nasdaq
- Down 1.07% to 26,953.87
- Dow Jones Industrial Average
- Down 0.54% to 51,583.98
- Oil prices
- Up more than 3%
- 10-year Treasury yield
- Reached its highest level since 2007
- October Fed hike probability
- Traders priced a 71% chance of a rate increase
- Best-performing S&P 500 sector
- Energy, which rose 1%
Quotes
Lauren Cassidy
Chief investment officer at Founders 100 ETF in Dallas
“The stock market wants a resolution to the (Middle East) conflict, and if we don't get that, we will have higher rates for longer, and that's going to continue to weigh on the equity market.”
livemint.com
Sources
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