Nasdaq Opens Down 0.16% at 26,143.64 as 10-Year Treasury Yield Tops 5% and Fed Rate Hike Odds Hit 93%

Mumbai, Sept 15: US equities opened lower on Tuesday, with the technology-heavy Nasdaq Composite (^IXIC) down 42.77 points, or 0.16%, at 26,143.64 as of 9:48:40 AM EDT, while the market remained open. The Dow Jones Industrial Average (^DJI) fell 343.00 points, or 0.65%, to 52,078.20 as of 9:48:56 AM EDT. The S&P 500 (^GSPC) slipped 14.66 points, or 0.19%, to 7,605.32 as of 9:49:13 AM EDT, and the Russell 2000 Index (^RUT) declined 9.20 points, or 0.32%, to 2,883.04 as of 9:35:25 AM EDT.  

The early decline came as the benchmark 10-year Treasury yield briefly rose above 5%, reaching 5.041%, its highest intraday level since 2007, and as Brent crude traded above $108 a barrel. Traders priced a roughly 93% probability of a Federal Reserve rate hike on Wednesday. 

Nasdaq Opens at 26,140.23 After Previous Close of 26,186.41 as Volume Tops 1.07 Billion 

The Nasdaq Composite opened at 26,140.23, below its previous close of 26,186.41. At 26,143.64, the index was down 42.77 points, or 0.16%, in early trade. Its day’s range was 26,092.00 to 26,172.12, with volume of 1,076,063,000. The 52-week range stood at 20,690.25 to 27,190.21, while average volume was 8,746,193,064. 

The Nasdaq 100 heatmap showed a split among technology and consumer names. Nvidia rose 1.20%, Advanced Micro Devices gained 2.50%, Intel added 2.58%, Qualcomm jumped 4.59%, Micron Technology rose 1.26%, ASML gained 1.29%, Arm Holdings advanced 3.86%, Marvell Technology rose 2.89%, Texas Instruments added 0.67%, Analog Devices rose 0.85%, Cisco Systems gained 0.73% and Broadcom edged up 0.07%. 

Among mega-cap names, Apple fell 0.71%, Microsoft slipped 0.42%, Alphabet Class A declined 0.81%, Alphabet Class C fell 0.79%, Meta Platforms rose 0.88%, Netflix dropped 2.66%, Amazon fell 0.36% and Tesla added 0.52%. Software stocks were mixed, with Adobe down 1.65%, Datadog down 1.06%, Cadence Design Systems down 1.42% and Synopsys down 1.97%. 

Dow Falls 343 Points to 52,078.20 as 10-Year Treasury Yield Hits 5.041% Intraday High 

The Dow Jones Industrial Average opened at 52,303.24, down from its previous close of 52,421.20. At 52,078.20, the blue-chip index was down 343.00 points, or 0.65%, in early trade. Its day’s range was 52,084.02 to 52,336.61, with volume of 39,020,110. 

The 52-week range was 45,057.28 to 54,744.33, and average volume was 495,829,354. The 10-year Treasury yield rose to 5.041%, its highest since 2007, before easing to 5.004%, up more than 4 basis points. 

The 20-year Treasury yield stood at 5.434%, while the 30-year Treasury yield was at 5.391%. Government bond yields also rose in Japan, Germany, the United Kingdom and France. The move raised borrowing costs for mortgages, corporate bonds and other loans. 

In the Dow heatmap, Chevron rose 1.45%, Caterpillar gained 0.16%, JPMorgan Chase edged up 0.03%, Travelers added 0.02% and Verizon rose 0.11%. 

Decliners included Goldman Sachs, down 1.40%, Johnson & Johnson, down 1.99%, UnitedHealth, down 1.54%, Merck, down 1.02%, Amgen, down 1.39%, Home Depot, down 1.09%, Walmart, down 0.65%, Procter & Gamble, down 1.01%, Coca-Cola, down 0.79%, Disney, down 1.22% and Apple, down 0.71%. 

Also Read: How to invest in US stocks

S&P 500 Slips 0.19% to 7,605.32 as Brent Crude Surges to $108.43 per Barrel 

The S&P 500 opened at 7,612.30, below its previous close of 7,619.98. At 7,605.32, the benchmark index was down 14.66 points, or 0.19%, in early trade. Its day’s range was 7,600.35 to 7,617.26, with volume of 217,826,501. 

The 52-week range was 6,316.91 to 7,816.70, and average volume was 5,178,900,967. Oil prices extended gains, with Brent crude for November delivery rising 1% to above $107 a barrel and US West Texas Intermediate up 1% to above $103. 

Later, Brent rose $2.75 to $108.43, while WTI gained $2.81 to $104.20. Prices were around $72 a barrel before the start of the US-Iran war in late February. In the S&P 500 heatmap, energy names gained, with Exxon Mobil up 1.26%, Chevron up 1.40%, ConocoPhillips up 1.72%, Marathon Petroleum up 1.89% and Valero Energy up 1.92%. 

Financials were mixed, with Wells Fargo up 2.74%, Citigroup up 2.09%, Bank of America up 0.18%, Morgan Stanley down 0.61%, Goldman Sachs down 1.37% and JPMorgan Chase down 0.09%. Healthcare was weak, with Johnson & Johnson down 1.88%, AbbVie down 1.27%, Merck down 1.04%, UnitedHealth down 1.39% and Amgen down 1.44%. 

Other healthcare decliners included Gilead Sciences, down 1.65%, Abbott Laboratories, down 1.44%, Intuitive Surgical, down 1.83%, Vertex Pharmaceuticals, down 1.34% and Bristol-Myers Squibb, down 1.31%. Consumer defensive names also fell, with Walmart down 0.74%, Costco down 0.88%, Coca-Cola down 0.64%, Procter & Gamble down 1.03% and Philip Morris down 2.00%. PepsiCo fell 0.95%, while Altria declined 1.27%. 

Russell 2000 Declines 0.32% to 2,883.04 as Small Caps Track Broader Market Weakness 

The Russell 2000 opened at 2,890.64, below its previous close of 2,892.24. At 2,883.04, the small-cap index was down 9.20 points, or 0.32%, in early trade. Its day’s range was 2,883.24 to 2,890.64, with volume of 0. The 52-week range was 2,303.46 to 3,069.71, and average volume was 5,178,900,967. The Russell 2000 heatmap showed wide dispersion. 

Among the gainers, Bloom Energy rose 4.29%, Waystar gained 8.27%, 10x Genomics rose 5.23%, Dave gained 3.89%, SM Energy rose 3.64%, PBF Energy gained 2.88%, Transocean rose 2.75%, Diamondback Energy rose 2.44% and Hims & Hers Health edged up 0.14%. 

Decliners included Scholar Rock Holding, down 7.23%, Cytokinetics, down 4.24%, Oscar Health, down 2.50%, Core Scientific, down 2.80%, Riot Platforms, down 2.39% and MARA Holdings, down 1.13%. Plug Power was also among the weaker names, while CleanSpark was flat. 

Fed Rate Hike Odds at 93% Ahead of Kevin Warsh Decision and Dot Plot Release 

The Federal Open Market Committee began its two-day September meeting on Tuesday, with traders overwhelmingly expecting a rate hike. Market pricing showed a roughly 93% probability of a quarter-percentage-point increase on Wednesday, which would be the first hike in more than three years. Earlier in the session, odds stood at 91% and 92%. The current target rate range is 3.5% to 3.75%, and analysts expect the Fed to raise its policy rate to an upper bound of 4.0%.  

The release of the dot plot, along with Fed Chairman Kevin Warsh’s press conference, could offer clues about the Fed’s monetary policy path. A survey showed that a majority of respondents now forecast at least two hikes over the next year, with 86% expecting a hike ahead, up from 46% last month, and 55% expecting more than a single hike. Analysts said the Fed has little choice but to hike rates this week, since the bond market has been signalling for weeks that higher rates are warranted.  

Treasury Secretary Scott Bessent was set to appear before the House Financial Services Committee for his annual testimony, where he was expected to tout the success of the Iran war and rising wages for the lowest-income Americans. He was likely to face questions about inflation, energy prices, interest rates and the federal debt. 

Brent Crude at $108.43 and WTI at $104.20 as Houthi Strikes Pressure Saudi Supplies 

Oil prices extended gains on Tuesday, with Brent crude rising $2.75 to $108.43 a barrel and US West Texas Intermediate gaining $2.81 to $104.20 a barrel. Brent had closed above $105 a barrel and WTI above $101 in the previous session. Prices were around $72 a barrel before the start of the US-Iran war in late February. The latest surge followed reports that Iran-backed Houthi rebels in Yemen conducted fresh strikes on Saudi Arabia, which recently closed a key pipeline that bypasses the Strait of Hormuz because of drone attacks.  

The Houthis also reportedly seized Perim Island in the Bab el-Mandeb Strait, adding pressure on Saudi oil exports and global shipping routes. Oman reportedly postponed a meeting in Muscat with Iran and other regional countries to discuss the Strait of Hormuz. Elevated energy prices are adding to inflation pressures and complicating the outlook for interest rates. 

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

Anthropic CEO Dario Amodei AI Safety Essay Triggers Chip Stock Rebound on Tuesday 

Controversy rocked the technology industry after Anthropic CEO Dario Amodei posted a lengthy essay on Saturday saying that AI labs need to take steps to prevent the technology from causing harm, including slowing the creation of ever more powerful models and asking the government to regulate the broader industry. OpenAI CEO Sam Altman wrote that he agreed, adding, “we need to pace the frontier.”  

SpaceX CEO Elon Musk also wrote, “Dario is right,” and said he has been warning about the dangers of AI for years. Nvidia CEO Jensen Huang said that while it is important to keep safety in mind, the idea that AI will lead to human extinction is fiction. Microsoft released a preliminary code of conduct for developing what it calls humanist AI, stating that humans must retain meaningful control over AI. The debate followed a sell-off in chip and AI-related stocks on Monday. On Tuesday, chipmakers rebounded.  

Nvidia rose 1.20%, Advanced Micro Devices gained 2.50%, Intel added 2.58%, Qualcomm jumped 4.59%, Micron Technology rose 1.26%, ASML gained 1.29%, Arm Holdings advanced 3.86%, Marvell Technology rose 2.89%, Texas Instruments added 0.67%, Analog Devices rose 0.85%, Cisco Systems gained 0.73% and Broadcom edged up 0.07%. 

Crypto Stocks Slide as Bitcoin Falls Below $77,000 Ahead of Senate Clarity Act Vote 

Cryptocurrency-linked stocks declined as bitcoin traded just below $77,000, down from overnight highs above $79,500. Coinbase Global fell 6.18% to $179.62, Strategy dropped 4.93% to $130.19, Robinhood Markets declined 4.61% to $109.06, Circle Internet Group tumbled 8.37% to $89.29, Galaxy Digital fell 5.35% to $22.84, Bitmine Immersion Technologies lost 6.15% to $24.17, Hyperliquid Strategies slipped 5.32% to $11.22, Strive fell 4.86% to $27.62, Bullish declined 4.35% to $35.95 and Webull dropped 4.37% to $8.65.  

The Senate was set to hold a cloture vote on the Clarity Act, a key test that will determine whether the broad digital assets bill has the bipartisan support to go to a floor vote. The bill needs 60 votes to advance. Uncertainty remains around the bill’s future, in part because Senate Democrats have been pushing for language that would address the wealth acquired by President Donald Trump and his family’s crypto ventures. A White House-approved ethics provision released on Sunday evening might not suffice. 

Enova International Plunges 25.35% After Withdrawing Grasshopper Bancorp Acquisition Applications from Regulators 

Enova International (ENVA), a Chicago-based fintech firm providing online loans and credit services, saw its shares plunge 25.35% to $169.25. The company withdrew its regulatory applications with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System to acquire Grasshopper Bancorp. CEO Steve Cunningham said regulators do not have clear standards for nonbanks that want to become banks and that serve customers whose credit needs are met mostly outside the banking system.  

He added that without clearly articulated standards, the process is susceptible to political pressure and outside advocacy. Enova reaffirmed its fiscal 2026 third-quarter outlook of around 25% year-over-year revenue growth and 30% adjusted earnings per share growth, as well as full-year guidance calling for revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35%. Dave & Buster’s Entertainment (PLAY) shares sank after the arcade and restaurant company posted an unexpected adjusted loss and missed revenue estimates in the second quarter. Reported revenue of $544.1 million missed the $556.8 million consensus estimate.  

Adjusted EBITDA of $98.9 million also missed the expected $120.4 million. The company posted an unexpected adjusted loss of 27 cents per share, missing the profit of 18 cents a share expected by analysts. Forgent Power Solutions (FPS) and Vera Bradley (VRA) were among companies reporting results. 

Dave & Buster’s Shares Sink After Q2 Revenue of $544.1 Million Misses Estimates 

Dave & Buster’s Entertainment (PLAY) shares sank after the arcade and restaurant company posted an unexpected adjusted loss and missed revenue estimates in the second quarter. Reported revenue of $544.1 million missed the $556.8 million consensus estimate. Adjusted EBITDA of $98.9 million also missed the expected $120.4 million. The company posted an unexpected adjusted loss of 27 cents per share, missing the profit of 18 cents a share expected by analysts. Forgent Power Solutions (FPS) and Vera Bradley (VRA) were among companies reporting results. 

Also Read: US Stock Market Timings 

Top Gainers: Forgent Power Solutions Up 12.09% and Skyworks Solutions Up 9.85% 

Forgent Power Solutions (FPS) led the gainers, rising 12.09% to $32.10. The stock had a market capitalisation of $8.298 billion, a P/E ratio of 480.92 and a 52-week change of -1.24%, with a range of $25.95 to $66.00. 

Skyworks Solutions (SWKS) climbed 9.85% to $87.07, giving the company a market capitalisation of $13.15 billion and a P/E of 45.66. Its 52-week change stood at 6.79%, with the stock trading between $51.93 and $92.30 over the period. 

Other notable gainers included Waystar Holding, up 8.49% to $27.01, and Telix Pharmaceuticals, which gained 8.17% to $12.74. Qorvo advanced 6.92% to $115.45, while Driven Brands rose 6.44% to $13.27. 

Technology stocks also featured strongly. Dell Technologies gained 4.71% to $559.26, Arm Holdings rose 4.51% to $249.78, and Qualcomm advanced 4.35% to $187.98. Coherent gained 3.85%, while 10x Genomics rose 5.13% and had a 52-week change of 433.97%. 

Top Losers: Enova Down 25.35% and Alignment Healthcare Down 17.70% in Early Trade 

Enova International (ENVA) was the worst performer, falling 25.35% to $169.25. The stock had a market capitalisation of $4.214 billion, a P/E of 16.60 and an 87.17% 52-week gain. Alignment Healthcare (ALHC) dropped 17.70% to $10.65, with a market capitalisation of $2.209 billion and a P/E of 63.82. Its 52-week change was -21.77%. 

Other major decliners included Ascendis Pharma, down 11.25%, Resolution Minerals, down 9.79%, and Axon Enterprise, down 8.61%. Circle Internet Group fell 8.37%, while Scholar Rock Holding declined 7.60%. Crypto-linked stocks also weakened. Coinbase Global fell 6.18%, Bitmine Immersion Technologies dropped 6.15%, Galaxy Digital declined 5.35%, and Strategy fell 4.93%. 

US Dollar Index Rises 0.23% to 99.62 as Gold Futures Fall to $4,335 

The US Dollar Index (DX-Y.NYB) rose 0.23% to 99.62, its highest level in two weeks, as investors took risk off the table and sold AI-related stocks amid concerns that the industry would slow the pace of development. The dollar’s gain was supported by higher oil prices, higher US yields and weaker risk appetite. Gold futures declined 0.4% to $4,335 an ounce.  

The dollar index stood above 99, supporting the view that the Fed will raise rates this week. Analysts said the combination of higher oil, higher US yields and weaker risk appetite helped lift the US dollar broadly. Near-term support may persist, but with a hike now heavily priced in, further dollar upside would likely require the Fed to keep the door open to additional tightening. 

Also Read: What Are Fractional Shares? 

Sector Heatmap Shows Energy Gains While Healthcare and Consumer Defensive Stocks Decline 

Across the sector heatmaps, technology, communication services, consumer cyclical, consumer defensive, healthcare, industrials, financial services, energy, real estate, basic materials and utilities showed mixed performance. Energy names gained as crude prices rose. Financials were mixed, with some banks higher and others lower. Healthcare was weak across several large-cap names.  

Consumer defensive stocks also declined. In the Russell 2000, healthcare, industrials, technology, financial services, consumer cyclical, energy, real estate, basic materials, utilities, communication services and consumer defensive sectors showed wide dispersion. The sector moves reflected a market balancing higher energy costs, rising Treasury yields and expectations of tighter monetary policy. 

Market participants will monitor the Federal Reserve decision, dot plot and Kevin Warsh’s press conference, alongside the 10-year Treasury yield above 5%, Brent crude above $108, WTI above $104, Middle East supply routes, AI safety developments and the Senate Clarity Act vote. Key opening levels include the Nasdaq at 26,143.64, Dow at 52,078.20, S&P 500 at 7,605.32 and rate hike odds near 93%. 

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/