The Prime Daily: 30 September 2026

Authored By Prime Research | Published at: Sep 30, 2026 09:14 AM IST

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Rising Treasury yields extend Wall Street’s losses

U.S. equities closed modestly lower on Tuesday for a second straight session as surging long-dated bond yields weighed on valuations. The Dow Jones fell 0.26%, the S&P 500 lost 0.16% and the Nasdaq Composite slipped 0.09%. Tech stocks traded unevenly after a leaked Anthropic IPO prospectus and a scrapped next-generation OpenAI model renewed questions about AI safety.

The 30-year Treasury yield climbed above 5.6%, its highest since 2002, while the 10-year yield rose to about 5.25%, a level last seen in 2007. The bond sell-off has raised borrowing costs across the economy and pressured richly valued equities and crypto.

Brent crude eased to about $96 a barrel, as reports pointed to a recovery in Saudi Red Sea port exports following a pipeline attack. Elevated energy prices continue to feed inflation concerns and weigh on growth.

New York Fed President John Williams said policymakers have ample time to assess incoming data before adjusting rates, sharply reducing market expectations of a quarter-point hike at the October meeting.

The Conference Board’s Consumer Confidence Index fell 6.7 points to 81.9 in September, its lowest since 2014 and well short of the expected rise to 89. Cost-of-living and job-market worries, compounded by higher oil prices and borrowing costs, are stoking stagflation fears ahead of today’s PCE inflation report.

The rupee opened under pressure, briefly breaching 96.00, before clawing back to end flat. Swift RBI action, a pullback in global crude, and equity index rebalancing-driven foreign inflows helped restore stability.

Nifty declined 6.65% in the September series, marking its sharpest series-to-series fall since March 2026. Rising crude prices amid the ongoing West Asia conflict and sustained FII selling weighed on the index, while Bank Nifty fell 5.66%.

FIIs’ index-futures long-short ratio stood at 0.09 at the start of the October series, compared with 0.11 at the beginning of the September series, indicating a strong bearish bias. However, such extreme short positioning may trigger short covering and a near-term pullback.

Around 91% of F&O stocks witnessed short build-up or long unwinding, compared with 42% in the previous series, highlighting heavily oversold conditions.

Nifty extended its decline for a second straight session yesterday, shedding 64 points to close at 22,685, its lowest close since 30 March 2026. Nifty staged a gradual recovery to finish more than 150 points above the day’s lows. Immediate support placed in the 22,500–22,600 zone. On the upside, resistance has shifted down to 23,000–23,100.

Indian markets are set for a mildly weak opening , tracking subdued Asian cues.

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