Dow Jones Falls 131 Points as 30-Year Treasury Yield Hits 5.62%, Pressuring US Markets

Mumbai, Sept 30: US equities ended the closing session slightly lower as the 30-year Treasury yield climbed to 5.62%, its highest level since June 2002, while oil price volatility and mixed technology earnings shaped trading across the major indices. The Dow Jones Industrial Average lost 131.59 points, or 0.26%, the S&P 500 declined 0.17%, and the Nasdaq Composite slipped 0.09%. Broader market performance reflected rising bond yields and a consumer confidence miss, with movements across utilities, energy and semiconductor shares influencing the session. 

Dow Jones Falls 131 Points as 30-Year Yield Surge Pressures Blue-Chip Index 

The Dow Jones Industrial Average opened at 51,416.96 and closed at 51,349.92, losing 131.59 points or 0.26%. The index touched an intraday high of 51,505.19 and a low of 51,129.18, reflecting a trading range of approximately 376 points. Movements in key constituents contributed to the index’s performance, with shares of Apple falling 2.65%, Nike declining 1.57%, and Johnson & Johnson dropping 1.57%, while Boeing rose 1.81% and Caterpillar gained 0.88%.  

The session followed a continued rise in long-dated Treasury yields, which affected trading across major US equities. The blue-chip index posted back-to-back losing sessions as Treasury yields held near multi-decade highs, with the 30-year bond yield exceeding 5.6% for a sixth consecutive session. The Dow Jones remained up 6.84% year-to-date despite the recent pullback, though it had declined 4.13% over the past month. 

Within the Dow Jones, the top gainers were Boeing at $189.38, up 2.71%, and Sherwin-Williams at $336.09, up 0.99%. The top losers were Walmart at $106.00, down 2.51%, and Apple at $332.99, down 1.60%. Bank stocks led the way lower, with JPMorgan Chase declining 0.48%, Morgan Stanley falling 0.41%, and Bank of America dropping 0.88%.  

The State Street Financial Select Sector SPDR ETF (XLF) also closed lower, reflecting broader weakness in financial shares. The Dow Jones index’s daily decline came as the 10-year Treasury yield rose to 5.293%, its highest level since June 2007, while the 2-year Treasury yield stood at 4.935%. 

S&P 500 Falls 0.17% as Yield Pressures Outweigh Technology Optimism 

The S&P 500 opened at 7,699.60 and ended at 7,670.84, losing 12.85 points or 0.17%. During the session, the index reached 7,699.60 at its high and 7,653.55 at its low. Movements across sectors influenced the broader benchmark, while Fair Isaac recorded a notable decline of 26.52%, Amgen gained 1.32%, and Oracle rose 3.94%. The index’s closing performance came as elevated Treasury yields and declining rate-hike expectations affected market trading. The S&P 500 remained up approximately 14.9% year-to-date despite the session’s decline, though it had declined 0.53% over the past month. Trading volume on the S&P 500 reached 2.75 billion shares, below the average volume of 5.04 billion shares. 

Among S&P 500 components, the top gainer was Cboe Global Markets at $265.22, up 4.72%, followed by Applied Materials at $508.97, up 4.56%. The top loser was Fair Isaac at $678.16, down 19.35%, followed by CRH at $83.99, down 7.91%.  

The index’s decline was led by weakness in consumer staples and communication services, which fell 0.8% and 0.9% respectively, while utilities gained 1.14% as investors rotated into defensive names. The S&P 500 posted four new highs and 29 new lows during the session, while the Nasdaq recorded 40 new highs and 249 new lows. Decliners outnumbered advancers by a 3.55-to-1 ratio on the NYSE. 

Nasdaq Composite Falls 0.09% as Technology Shares Trade Mixed 

The Nasdaq Composite opened at 26,908.76 and closed at 26,797.54, marking a loss of 22.84 points or 0.09%. Its intraday high stood at 26,919.72, while the low was 26,717.95. Technology and growth-oriented shares including Nvidia declining 0.72%, Apple falling 2.65%, and Applied Materials rising 5.19% contributed to the index’s daily performance. The technology-heavy benchmark responded to semiconductor sector strength and weakness in consumer technology names during the session.  

The Nasdaq Composite remained up 15.30% year-to-date, though it had declined 1.64% over the past five sessions. Trading volume on the Nasdaq reached 6.05 billion shares, below the average volume of 8.14 billion shares. Within the Nasdaq, the top gainers included Applied Materials at $512.01, up 5.19%, and Lam Research at $326.11, up 3.69%. The top losers were Datadog at $262.07, down 2.47%, and Palo Alto Networks at $383.39, down 2.22%.  

The Nasdaq 100 index gained 0.35%, outperforming the broader composite, supported by strength in semiconductor and AI-related shares. The Nasdaq Composite’s 52-week range stood between 20,690.25 and 27,288.79, with the index trading approximately 1.8% below its 52-week high. The Nasdaq’s decline was limited by gains in Meta Platforms, which rose 3.24%, and Netflix, which gained 1.53%, offsetting weakness in other technology names. 

Also Read: What Is the New York Stock Exchange (NYSE)?

Russell 2000 Falls 0.34% as Smaller Stocks Respond to Yield Pressure 

The Russell 2000 opened at 2,820.36 and closed at 2,808.23, losing 9.68 points or 0.34%. It recorded an intraday high of 2,825.37 and low of 2,794.39. Movements among smaller-cap companies contributed to the benchmark’s performance as elevated Treasury yields influenced broader trading.  

The small-cap index remained up 13.14% year-to-date, though it declined 5.53% over the past month and 2.83% over the past five sessions. The Russell 2000’s 52-week range stood between 2,303.46 and 3,069.71, with the index trading approximately 8.5% below its 52-week high. 

Among notable small-cap movers, Iovance Biotherapeutics surged 31.50%, Bloom Energy gained 10.82%, and AXT Inc rose 6.12%. On the losing side, Piper Sandler fell 9.54% and AMR Corporation declined 5.43%. The Russell 2000’s decline came as the S&P SmallCap 600 also lost 0.69%, reflecting broader weakness in smaller-cap shares amid elevated borrowing costs.  

The small-cap benchmark’s performance was influenced by rising Treasury yields, which typically have a more pronounced impact on smaller companies with higher debt levels and less access to capital markets compared to their larger counterparts. 

S&P 100 Falls 0.30% as Large-Cap Shares Track Yield Movements 

The S&P 100 opened at 3,844.86 and finished at 3,825.12, recording a loss of 11.42 points or 0.30%. The index traded between 3,844.86 and 3,819.56 during the session. Movements in major large-cap constituents including Microsoft declining 0.05% and Amazon gaining 0.18% contributed to its daily performance as markets responded to Federal Reserve commentary and bond market developments.  

The S&P 100’s 52-week range stood between 3,074.00 and 3,888.97, with the index trading approximately 1.6% below its 52-week high. The S&P 100’s decline was more pronounced than the broader S&P 500’s 0.17% drop, reflecting the larger concentration of technology and growth shares within the large-cap benchmark. 

Dow Composite, Transportation and Utility Indices Reflect Mixed Trends 

The Dow Jones Composite Average opened at 15,960.26 and closed at 15,980.64, gaining 4.38 points or 0.027%, after moving between 15,992.83 and 15,890.27. The Dow Jones Transportation Average ended at 19,650.37, compared with an opening level of 19,584.64, representing a 0.35% gain of 67.83 points. The Dow Jones Utility Average closed at 1,015.93, gaining 1.14% or 11.43 points from its opening level of 1,001.84. Movements in relevant constituents reflected the defensive rotation into utilities amid elevated bond yields. The Dow Jones Utility Average’s 52-week range stood between 998.69 and 1,202.79, with the index trading near its 52-week low. 

The Dow Jones Transportation Average’s 52-week range stood between 15,064.48 and 24,825.70, with the index trading approximately 20.9% below its 52-week high. The transportation index’s resilience came despite elevated oil prices, which typically pressure transportation shares through higher fuel costs.  

The Dow Jones Utility Average’s gain reflected investor rotation into defensive sectors as Treasury yields remained near multi-decade highs, with utilities offering competitive dividend yields relative to fixed-income alternatives. 

Philadelphia Semiconductor Index Gains 1.32% as Chip Stocks Advance 

The Philadelphia Semiconductor Index (SOX) opened at 12,667.36 and closed at 12,629.16, gaining 163.92 points or 1.32%. The index reached an intraday high of 12,773.89 and a low of 12,588.86. Applied Materials rose 5.19%, Lam Research gained 3.69%, and Broadcom advanced 2.62%, supported by optimism around AI infrastructure spending. 

However, performance across semiconductor stocks remained mixed. ARM Holdings declined 8.69%, Qualcomm fell 7.17%, and Intel dropped 5.67%. Memory stocks also weakened, with SK Hynix down 5.03%, SanDisk falling 3.65%, and Micron Technology declining 2.61%. 

The SOX traded about 13.8% below its 52-week high of 14,655.29. The sector’s advance was supported by expectations of increased AI infrastructure investment, including reports that Anthropic plans to spend $518 billion on cloud, computing and infrastructure in the coming years. 

Also Read: How to invest in US stocks

NYSE Composite Changes 0.19% as Broader Shares Track Yield Movements 

The NYSE Composite Index opened at 23,696.78 and closed at 23,711.68, declining 45.62 points or 0.19%. It traded between 23,747.74 and 23,616.86 during the session, as rising Treasury yields influenced broader US equity markets. 

The index’s 52-week range stood between 20,906.44 and 24,866.75, leaving it approximately 4.6% below its 52-week high. Financial stocks faced pressure as higher bond yields increased borrowing costs and weighed on loan demand. The S&P 500 financials index declined 6.3% in September, heading towards its first monthly decline in four months and its weakest performance since March 2023. 

S&P MidCap 400 and SmallCap 600 Move Lower as Rate Concerns Shape Trading 

The S&P MidCap 400 opened at 3,624.40 and closed at 3,618.47, moving 3.53 points or 0.097% lower, with an intraday range of 3,634.29 to 3,598.03. The S&P SmallCap 600 opened at 1,678.52 and ended at 1,671.70, losing 11.56 points or 0.69%, after trading between 1,680.51 and 1,663.35.  

The two benchmarks reflected movements among mid- and small-cap shares as elevated interest rates affected the wider market. The S&P MidCap 400’s 52-week range stood between 3,107.41 and 3,928.98, while the S&P SmallCap 600’s 52-week range stood between 1,364.16 and 1,832.20. 

The S&P MidCap 400’s decline came as the index remained down 6.79% over the past three months, while the S&P SmallCap 600 had declined 5.42% over the past month. The mid-cap and small-cap benchmarks’ performance reflected the disproportionate impact of elevated borrowing costs on smaller companies, which typically rely more heavily on debt financing compared to their larger counterparts.  

The S&P MidCap 400 and S&P SmallCap 600 had both underperformed the S&P 500 on a year-to-date basis, reflecting the market’s preference for larger, more established companies amid elevated interest rates. 

Oil Retreats 3% as Treasury Yields Hit Multi-Decade Highs 

The US market session was driven by rising long-term Treasury yields and falling oil prices. The 30-year Treasury yield climbed to 5.62%, its highest level since June 2002, while the 10-year yield reached 5.293%, its highest since June 2007. The 30-year yield stayed above 5.61% for a sixth consecutive session amid the global bond sell-off, although yields later eased as oil prices declined. 

Rate expectations also influenced trading. New York Fed President John Williams said there was no need for urgency in deciding when to raise interest rates. Expectations of at least a 25-basis-point Fed rate hike in October fell to 51.5%, from nearly 70% earlier in the session, according to CME FedWatch. 

Oil prices declined amid signs of improving Middle East supply. WTI crude fell 2.2% to $90.71 per barrel, while Brent declined 2.6% to around $96. European diesel benchmark Gasoil fell to $1,365.25 per metric tonne, its lowest level since September 4. 

VIX Moves Lower as Rate-Hike Expectations Ease 

The CBOE Volatility Index (VIX) fell 1.31% to 15.86, from 16.07 previously, despite the S&P 500 declining for a second consecutive session. The VIX traded between 16.19 and 15.73 during the session, remaining near the lower end of its 52-week range of 11.50–65.73. The VXN stood at 19.23, while VIX3M was at 17.45. 

Also Read: US Stock Market Timings 

S&P 500 Sectors Deliver Mixed Performance 

Sector performance was mixed. Utilities gained 1.14%, while Energy declined 0.89%. Communication Services rose 1.67%, Consumer Discretionary 1.58%, Consumer Staples 0.80%, Financials 0.48%, Health Care 0.80%, Industrials 0.14%, Real Estate 0.31%, Materials 0.25% and Information Technology 0.51%. 

Utilities benefited from defensive rotation and continued interest in power producers linked to AI and data-centre demand, including Vistra Energy and Constellation Energy. Energy stocks weakened alongside crude prices, with SLB, Halliburton, Texas Pacific Land, ONEOK and EQT among the decliners. 

Financials remained under pressure, with the sector down 6.3% in September, its weakest monthly performance since March 2023. Blackstone declined 21% during September, BlackRock fell 8%, while Morgan Stanley faced its sixth consecutive daily decline. 

Magnificent Seven Performance Shows Meta Gains 3.24% as Apple Declines 2.65% 

The Magnificent Seven delivered mixed performance, with Meta Platforms rising 3.24%, Nvidia gaining 0.72% and Amazon adding 0.18%. In contrast, Apple declined 2.65%, Alphabet fell 0.53%, Microsoft slipped 0.05%, and Tesla dropped 1.25%. Overall, the Magnificent Seven index declined 0.86%, reflecting divergence between AI-focused companies and consumer technology stocks. Nvidia traded near $230 per share, with its market capitalisation exceeding $5.5 trillion. 

Semiconductor, Financial and Energy Stocks Show Mixed Moves 

Semiconductor stocks gained, with the Philadelphia Semiconductor Index rising 1.32%. Applied Materials advanced 5.19%, Lam Research gained 3.69%, and Broadcom rose 2.62%, supported by optimism around AI infrastructure spending. However, ARM Holdings fell 8.69%, Qualcomm declined 7.17%, and Intel dropped 5.67%. 

Financial stocks remained under pressure, with JPMorgan Chase falling 0.48%, Morgan Stanley declining 0.41%, and Bank of America dropping 0.88%. The S&P 500 financials index was down 6.3% in September, reflecting continued pressure from elevated Treasury yields. 

Energy stocks also declined alongside weaker crude prices, with Brent crude falling approximately 2.6% to around $102 per barrel. SLB, Halliburton and Texas Pacific Land were among the notable energy-sector decliners. 

Economic Data Shows Consumer Confidence Falls to 81.9 

US economic data showed weakening consumer sentiment and labour demand. The Conference Board Consumer Confidence Index fell to 81.9 in September, from 88.6 in August and below expectations of 89. The present situation index declined to 109.3 from 117.2, while the expectations index fell to 63.6 from 69.5. 

JOLTS job openings declined to 7.079 million in August, below expectations of 7.228 million and the revised July figure of 7.335 million. Quits stood at 3.066 million, while layoffs reached 1.641 million. 

Meanwhile, the S&P Cotality Case-Shiller 20-City Home Price Index rose 2.47% year-on-year in July, accelerating from 2.1% in June. The data highlighted softer consumer confidence and labour demand alongside continued housing-price growth. 

Also Read: What Are Fractional Shares? 

Federal Reserve and Treasury Yields Set the Rate Backdrop as 10-Year Hits 5.281% 

The Federal Reserve remained a key focus as markets assessed FOMC commentary. Federal Reserve Governor Michael Barr said further policy adjustments are likely to be Treasury Yields Rise as Fed Officials Signal Focus on Inflation 

Federal Reserve officials stressed the need to bring inflation back to target. Chicago Fed President Austan Goolsbee warned that allowing inflation to remain above the Fed’s target for 5½ years would be “playing with fire”, while another Fed official said further policy adjustments may be needed, noting that “in my base case, further policy adjustments are likely to be needed.” 

The 2-year Treasury yield stood at 4.935%, while the 5-year yield was 5.072%. The 10-year yield was 5.281%, and the 30-year yield stood at 5.583% after reaching 5.613%, its highest level since June 2002. The yield curve flattened as shorter-term yields eased while longer-term yields remained elevated. The average 30-year fixed mortgage rate rose to 7.58%, its highest level since November 2023. 

Crude Oil and Metals Decline Amid Supply Developments 

Brent crude fell 2.6% to around $102 per barrel, while WTI declined 2.2% to $90.71. Gold traded at $4,162.22, while silver stood at $61.78. Natural gas fell 3.1% to $3.011 per million British thermal units, pressured by expectations of higher output and weaker demand. 

Silver touched $60.63, its lowest level since August 5, while copper remained under pressure amid inventory concerns. 

Dollar Strengthens as US Yields Remain Elevated 

The US Dollar Index rose 0.19% to 101.39. The euro fell 0.24% to $1.1344, its lowest level in three months, while USD/JPY stood near 157.43 and GBP/USD traded near three-month lows. The dollar index was on track for a 1.8% monthly gain, supported by elevated US Treasury yields and uncertainty surrounding the Middle East conflict. 

The closing session was shaped by 30-year Treasury yields reaching 5.62%, alongside a 2.6% decline in Brent crude and consumer confidence falling to 81.9. The major US indices finished lower, while utilities gained 1.14% and energy declined 0.89%. These figures provide a factual summary of the session and its key market developments. 

Source 

• https://www.nasdaq.com/ 

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