Nasdaq Composite Falls 0.70% as Treasury Yields Rise and Oil Crosses $105

Mumbai, Sept 24: The Nasdaq Composite fell 0.70% to 26,746.32 in early trading on Thursday as higher US Treasury yields and rising crude oil prices weighed on US equities. The index opened at 26,734.51, compared with the previous close of 26,936.04, and moved within a day range of 26,717.17 to 26,802.55 as of 9:54:05 am EDT. The broader US market also opened lower, with the Dow Jones Industrial Average down 0.32% and the S&P 500 down 0.30%. 

Nasdaq Composite Opens Lower as Yields Climb 

The opening decline extended the weakness seen across US equities after the three major benchmarks recorded losses in the previous session. The Nasdaq Composite was down 189.71 points, while the Dow Jones Industrial Average fell 165.79 points to 51,345.80 and the S&P 500 declined 23.37 points to 7,682.66 in the early session. 

The Nasdaq Composite opened at 26,734.51, below its previous close of 26,936.04. The index traded between 26,717.17 and 26,802.55 during the early session, while reported volume stood at 1.758 billion shares. Its 52-week range remained between 20,690.25 and 27,288.79, keeping the index below its recent high while it continued to trade at elevated levels compared with the lower end of its annual range. 

The S&P 500 opened at 7,666.99 after closing at 7,706.03 in the previous session. Its early trading range stood between 7,665.49 and 7,684.72, while volume was reported at 330.90 million. The Dow Jones Industrial Average opened at 51,415.75, against a previous close of 51,511.59, and traded between 51,224.96 and 51,485.97. 

30-Year Treasury Yield Hits 5.44% And Pressures Stocks 

US Treasury yields remained a central factor behind Thursday’s weaker opening. The 30-year Treasury yield rose above 5.43% and touched 5.446%, reaching its highest level since 2004. The benchmark 10-year Treasury yield climbed to around 5.15%, marking its highest level since July 2007, while the two-year Treasury yield reached 4.897%, its highest level since 2023. 

The latest moves followed a sharp increase in Treasury yields during Wednesday’s trading session. The 10-year yield rose by more than 14 basis points on Wednesday after stronger-than-expected US business activity data increased concerns that inflation could remain persistent. 

The yield later eased slightly during Thursday’s early trading, but remained around 5.10% to 5.15% in the available market updates. The 30-year yield continued to trade close to its long-term high. 

Higher Treasury yields have become an important factor for US equities because they raise borrowing costs across mortgages, corporate debt and other loans. The market updates also linked the increase in yields to stronger US economic activity, higher oil prices and expectations that the Federal Reserve could maintain or increase interest rates. 

New York Federal Reserve President John Williams said on Thursday that expecting another rate increase before the end of the year was a reasonable possibility, while also stressing that policymakers would continue to assess incoming economic data. 

Market pricing also reflected increased expectations for another rate increase. The available readings showed traders assigning roughly 64% to 69% odds to a quarter-percentage-point increase at the October meeting, compared with about 55% one week earlier. Another market reading placed the probability of an October increase above 70%, showing that expectations had moved higher over the week. 

Oil Rises Above $105 as Iran Talks Remain Unclear 

Crude oil prices came under fresh pressure as markets monitored the US-Iran conflict, diplomatic talks and developments around the Strait of Hormuz. Brent crude rose above $105 a barrel, reaching $105.40, up $2.32 or 2.25% at 0803 GMT. West Texas Intermediate (WTI) increased to $93.94, gaining $1.78 or 1.93%. Other early readings placed Brent near $105 and WTI around $93.65–$93.80. 

The gains followed continued uncertainty around diplomatic efforts between the US and Iran. Tehran was reviewing Washington’s response to proposals involving the reopening of the Strait of Hormuz and lifting the US naval blockade on Iranian ports. The discussions had not produced a clear breakthrough. 

The Strait of Hormuz remained a key concern because of its importance to global oil shipments. Fears of prolonged disruption increased supply risks and supported crude prices. 

Markets also monitored reports of a possible 90-day US diesel export ban. The White House denied the report, while US Energy Secretary Chris Wright said such a restriction would not work. 

Strong US Data Adds to Inflation and Rate Concerns 

US economic data added to concerns over inflation and interest rates. A business activity index reached its highest level in more than five years, while manufacturing and services PMI readings showed continued strength. 

Initial jobless claims also fell by 1,000 to 197,000 for the week ended 19 September, below expectations of 201,000. Continuing claims stood at 1.72 million for the week ended 12 September. 

The combination of firm economic activity and a stable labour market kept attention on inflation and the Federal Reserve’s future interest-rate path. 

Nasdaq Technology Shares Face Broad Early Pressure 

Technology stocks accounted for much of the early weakness in the Nasdaq Composite. Several large technology and semiconductor names traded lower, adding pressure to the technology-heavy index. 

Within the Nasdaq 100 heatmap, Microsoft fell 1.83%, Broadcom declined 1.74%, Micron Technology fell 1.66%, ASML dropped 1.64%, Lam Research declined 1.61%, and Applied Materials fell 1.96%. Qualcomm declined 2.12%, while Arm Holdings fell 2.87% and Western Digital declined 3.21%. 

Other technology-related stocks also moved lower. Nvidia fell 1.18%, Palantir declined 1.54%, Amazon fell 1.24%, AppLovin declined 1.81%, and Tesla fell 0.48%. 

Not every major technology company moved lower. Meta Platforms rose 1.89%, Netflix gained 0.45%, Cisco Systems slipped 0.53%, and Alphabet’s Class A shares were nearly unchanged at 0.02% higher. The mixed performance, however, left the broader technology group under pressure. 

The S&P 500 heatmap showed a similar pattern. Oracle fell 7.45%, Microsoft declined 1.46%, Broadcom dropped 2.00%, Micron fell 2.29%, Lam Research declined 1.99%, and Applied Materials fell 2.29%. Western Digital declined 3.77%, while IBM fell 2.56%. 

Oracle Falls 7.45% After New Mexico Project Report 

Oracle emerged as one of the most closely watched large technology stocks during the opening session. Its shares fell 7.45% in the S&P 500 heatmap, after reports that the company had cited a force majeure clause concerning a data centre project under construction in New Mexico. 

The report said Oracle had sent a letter to the developer of the project, a unit of Blue Owl Capital, citing the clause if construction delays affected the project. The report also stated that Oracle was not seeking to leave the project entirely. 

An Oracle spokesperson said the construction project remained on the company’s planned schedule. 

The development added to pressure on technology stocks at a time when the market was already dealing with higher Treasury yields and questions surrounding the sustainability of large artificial intelligence-related capital expenditure. 

The move made Oracle one of the most significant early decliners among major S&P 500 technology names, alongside weakness in several semiconductor and hardware companies. 

Meta Gains 1.89% As AI Plans Keep Attention On Tech 

Meta Platforms moved against the broader technology weakness, rising 1.89% in the Nasdaq 100 heatmap and 1.93% in the S&P 500 heatmap. 

The company held its Meta Connect event on Wednesday, where Chief Executive Officer Mark Zuckerberg introduced new products involving artificial intelligence and cameraless virtual-reality glasses. Meta also outlined plans to monetise its Muse artificial intelligence agent. 

Muse debuted on 8 September and had become a leading app on Apple’s App Store and Google’s Play Store, according to the supplied market report. Meta said it expected to keep the service free for a large number of tokens while eventually earning a small fee from transactions. 

The company also announced integrations involving PayPal and retailers including Walmart, Best Buy, The Gap, Sephora, Wayfair and American Eagle. Expedia was added on the travel side, while Instacart was included for grocery shopping. 

Meta also announced computer-control capabilities for Mac devices, allowing the agent to operate a Mac on a user’s behalf. 

The announcements came after Meta shares had already gained strongly during September, with the stock reaching a 52-week high during Wednesday’s session. 

MGM Drops Nearly 10% After Takeover Proposal Ends 

MGM Resorts International was among the biggest early decliners in the wider US stock market. Its shares fell almost 10% after People Incorporated withdrew its proposal to acquire the remaining shares of the casino operator. 

The proposal announced in June valued MGM at $48.30 per share in cash, or approximately $18 billion including debt. MGM shares were trading around $34 during Thursday’s early session when the withdrawal was reported. 

Barry Diller, who controls People Incorporated, said the company had decided not to pursue taking MGM private. People Incorporated continued to hold 66.8 million MGM shares, representing approximately 27% of the company, according to the supplied report. 

The move made MGM one of the largest decliners among S&P 500 companies during the opening session. 

The company had reported improving revenue trends at its Las Vegas Strip resorts in its first quarter and had indicated that travel bookings remained resilient despite challenges surrounding consumer sentiment. 

Russell 2000 Falls 0.41% As Smaller Stocks Also Decline 

The weakness extended beyond large-cap US indexes. The Russell 2000 Index fell 0.41% to 2,826.89 in early trading, down 11.77 points from its previous close of 2,838.66. 

The index opened at 2,834.73 and traded between 2,826.62 and 2,834.73 in the available early-session data. Its 52-week range stood between 2,303.46 and 3,069.71. 

Several Russell 2000 constituents recorded sharp declines. Bloom Energy fell 6.42%, ACM Research declined 6.59%, Nextpower fell 4.71%, Viking Therapeutics declined 12.82%, and Gildan Activewear fell 10.48%. 

MGM Resorts fell 9.94%, while Kinross Gold declined 9.81% and ACADIA Pharmaceuticals fell 9.20%. Oracle declined 7.37% in the broader stock screener, while Fastly fell 7.28% and Almonty Industries declined 6.79%. 

Some smaller companies moved higher. Twist Bioscience gained 6.42%, 10x Genomics rose 4.05%, Agilent Technologies gained 3.59%, and Everpure rose 18.17%. 

The Russell 2000’s early movement showed that the weaker opening extended across different segments of the US equity market rather than remaining limited to the largest technology companies. 

Energy Shares Rise While Metals and Growth Stocks Weaken 

Sector movements reflected the divergence created by higher oil prices and Treasury yields. Energy-related stocks recorded gains in several of the supplied heatmaps, while technology, materials and some growth-focused names moved lower. 

In the S&P 500 heatmap, Exxon Mobil rose 1.57%, Chevron gained 0.53%, ConocoPhillips increased 1.34%, Marathon Petroleum rose 2.21%, and Valero Energy gained 2.18%. 

Healthcare stocks also recorded several gains. Eli Lilly rose 2.55%, Johnson & Johnson gained 1.61%, Merck increased 1.90%, Thermo Fisher Scientific rose 1.64%, Pfizer gained 1.83%, and Vertex Pharmaceuticals increased 1.61%. 

Consumer defensive stocks also included several gainers, with Coca-Cola rising 1.30%, Procter & Gamble gaining 1.03%, Philip Morris increasing 1.82%, and PepsiCo rising 0.60%. 

By contrast, materials and mining companies faced pressure as Treasury yields increased. The supplied market update showed the metals and mining exchange-traded fund falling 2.1%, while the energy exchange-traded fund gained nearly 1%. 

Trump-Xi Meeting Adds Trade And AI Focus 

The scheduled meeting between US President Donald Trump and Chinese President Xi Jinping remained a key market event, with discussions expected to cover trade, artificial intelligence, Taiwan, Iran and critical minerals. US Treasury Secretary Scott Bessent said the two countries had agreed to extend their tariff truce by two months to 10 January, potentially supporting critical-mineral supplies. However, expectations for major agreements remained limited. AI competition and rare-earth supplies could remain important topics for technology and semiconductor companies. Ahead of the meeting, semiconductor ETFs opened lower, with one memory-focused fund down 1.5% and a broader semiconductor fund down 2%. 

Starbucks Plans 250 North American Store Closures 

Corporate developments outside technology also influenced individual stocks during Thursday’s session. Starbucks said it would close 250 stores across North America later in the week, representing slightly more than 1% of its network of more than 18,000 stores across the continent. 

The company expected approximately $300 million in restructuring charges linked to the closures. It also reduced its forecast for net new store openings in the current fiscal year to around 440 locations, compared with its earlier forecast of 600 to 650. 

The company said the closures followed a review of its North American coffeehouse portfolio. It is also progressing with plans to update around 1,500 locations. 

Starbucks shares were up less than 1% in pre-market trading and had gained around 12% during the year before Thursday’s session. 

Stitch Fix Falls 20% On Weaker Revenue Outlook 

Stitch Fix shares fell around 20% in pre-market trading after the online personal styling company issued weaker guidance for the current quarter and fiscal 2027. 

The company forecast first-quarter fiscal 2027 revenue of $323 million to $328 million, below analysts’ expectation of $352.2 million. Its full-year revenue forecast stood at $1.31 billion to $1.36 billion, compared with an analyst expectation of $1.40 billion. 

Stitch Fix projected adjusted EBITDA of $3 million to $6 million for the current quarter and $27 million to $42 million for the full year. Analysts had expected $13.8 million and $54.6 million, respectively. 

For the fiscal 2026 fourth quarter, the company reported a loss of $0.02 per share on revenue of $324.4 million. Analysts had expected a loss of $0.06 per share on revenue of $324.7 million. 

The company said its full-year guidance reflected a more challenging consumer environment and a lower active-client starting point. 

Global Debt Tops $365 Trillion Amid Higher Costs 

The rise in bond yields came as broader concerns about government debt and interest costs remained part of the global market backdrop. 

Global debt increased by $10 trillion during the first half of the year to more than $365 trillion, according to research cited in the supplied market material. Economists highlighted persistently large deficits and rising interest expenses among major economies. 

The increase in borrowing costs occurred alongside the sharp move in US Treasury yields. The 30-year US Treasury yield reached its highest level since 2004, while the 10-year yield reached levels last seen in 2007. 

The combination of elevated government borrowing, higher interest expenses and stronger oil prices therefore remained part of the wider financial-market environment surrounding Thursday’s US equity opening. 

Switzerland Holds Rates At 0% Despite Global Tightening 

Switzerland’s central bank kept its key interest rate at 0% on Thursday, maintaining a different policy position from several major central banks that have moved towards tighter monetary conditions. 

Swiss annual inflation stood at 0.8% in August, with higher gasoline, diesel and heating oil prices contributing to the increase. Switzerland’s central bank targets inflation between 0% and 2%. 

Market participants were pricing roughly even odds of a rate increase in December, while the supplied report indicated more than 90% odds of a rate increase by early 2027. 

The Swiss decision contrasted with the renewed discussion around further rate increases in the United States following stronger economic activity and higher inflation concerns. 

Treasury Yields and Oil Remain Central To Thursday’s Session 

The opening session brought together several developments that had already shaped the previous day’s market decline. Treasury yields remained close to multi-year highs, crude oil traded above $105 a barrel, and US economic data continued to show firm activity and a stable labour market. 

At the same time, markets were monitoring the Trump-Xi meeting, developments surrounding the US-Iran conflict, the Strait of Hormuz and the possibility of further Federal Reserve rate increases. 

The Nasdaq Composite’s 0.70% early decline came alongside a 0.32% fall in the Dow Jones Industrial Average, a 0.30% decline in the S&P 500 and a 0.41% fall in the Russell 2000. The moves showed broad weakness across the major US equity benchmarks at the start of Thursday’s trading session. 

Individual stocks recorded larger moves than the headline indexes. Oracle fell 7.45%, MGM Resorts declined almost 10%, and several semiconductor companies fell between roughly 1% and 3%. At the same time, Meta rose 1.89%, while energy and healthcare stocks recorded several gains. 

The session therefore opened with the US equity market balancing higher financing costs, elevated oil prices, strong economic data, corporate developments and major geopolitical events. 

The Nasdaq Composite fell 0.70% to 26,746.32 in early Thursday trading as Treasury yields remained elevated and Brent crude moved above $105. The session also featured pressure on technology stocks, weakness across major US indexes and continued attention on Federal Reserve policy, US-China discussions and Middle East developments. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-utility-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 
• https://www.cboe.com/tradable_products/vix/