The Dow New York Stock Exchange ended lower last night (Sept. 28) as investors sold the stock broadly. especially technology stocks After the 10-year US Treasury yield hit its highest level since June. The market has also been pressured by concerns about inflation in the US. including controversy in Congress over the approval of the interim budget bill and raising the US debt ceiling.
- The Dow Jones Industrial Average closed at 34,299.99, down 569.38, or -1.63%.
- The S&P 500 index closed at 4,352.63, down 90.48, or -2.04%.
- The Nasdaq index closed at 14,546.68 points, down 423.29 points, or -2.83%.
The New York Stock Exchange fell sharply. The yield on the 10-year U.S. Treasury Treasury surged past 1.54% overnight, its highest since June. This puts pressure on interest-rate-sensitive stocks, especially tech stocks. The cause of bond yields rebounded last night. came from concerns about rising inflation. Including the Fed signaling a cut in its bond-buying program following its quantitative easing (QE) measure and raising interest rates one year earlier than expected.
The 10-year U.S. government bond is the underlying bond in determining the price of debt securities around the world. This includes mortgage loan interest rates. If bond yields rise This will cause companies to face higher costs from debt repayments. This will result in these companies reducing their investment. and reduce dividend payments to investors
Ten of the 11 stocks calculated in the S&P500 ended lower, led by tech stocks down 2.98 percent, with Facebook down 3.66 percent, Microsoft down 3.62 percent and Apple down 2.38. Alphabet was down 3.72 percent, Nvidia was 4.44 percent, Amazon was down 2.64 percent, and Netflix was down 1.48 percent.
The energy sector index jumped 0.46% and was the only stock to close in positive territory. ConocoPhillips was up 1.63 percent, Halliburton was up 1.13 percent, Exxon Mobil was up 1.05% and Chevron was up 0.38%.
The trading environment is also affected by inflation concerns. After Fed Chairman Jerome Powell told the Senate Banking Committee yesterday that The US will face a longer-than-expected high inflation. While Mrs. Janet Yellen, US Treasury Secretary, predicted that Inflation is likely to hit nearly 4% by the end of the year.
The market has also been pressured by controversy in Congress over the approval of the interim budget bill and raising the US debt ceiling. After it was reported that Republican senators have blocked the bill. This could result in US government agencies having to close operations at the end of the month. due to lack of budget And the US government is at risk of facing default for the first time in history.
In the US economic data released on Wednesday, a Conference Board survey showed the US consumer confidence index fell to 109.3 in September, the lowest level since February. From 115.2 in August and below analysts’ forecast of 114.5, the Consumer Confidence Index has been weighed down by concerns over the spread of the coronavirus. will affect the US economy.
Other economic data scheduled to be released this week include: August pending home sales, weekly unemployment claims, 2Q21 gross domestic product (last projection), revenue and Personal Spending Aug, Personal Consumption Expenditure (PCE) Price Index (PCE) Aug., Purchasing Managers Index (PMI) Final Manufacturing Sector Sept. Marchit, the September manufacturing index from the US Institute of Supply Management (ISM) and the September consumer confidence index from the University of Michigan.
By InfoQuest News Agency (29 Sept. 64)