The 10-Year Treasury yield climbed 11 basis points to 5.08% on September 23, marking a 19-year high as of 11:45 AM ET. This spike in bond yields halted a recent tech-led rally, causing the S&P 500 to fall 0.55% to 7,722. The Nasdaq Composite dropped 0.91% to 26,993, while the Dow Jones Industrial Average slipped 0.54% to 51,582.
| Index | Change | Level |
|---|---|---|
| S&P 500 | -0.55% | 7,722 |
| Nasdaq Composite | -0.91% | 26,993 |
| Dow Jones Industrial Average | -0.54% | 51,582 |
Gold traded down 1.88% to $4,283.13 during the session. All sectors apart from energy stocks declined, with basic materials and consumer cyclicals recording the steepest losses. KB Home shares slipped slightly despite an earnings beat the previous day, after the company warned of increasingly difficult housing market conditions. The average U.S. 30-year fixed-rate mortgage reached 7.12%, its highest point in over two years.
Cybersecurity stocks rallied against the broader market trend, with shares of CrowdStrike and Palo Alto Networks rising as investors focused on the firms' potential role in artificial intelligence safety. Rising Treasury yields, oil prices, and inflation fears weighed on U.S. equities, challenging the momentum of the technology sector.
September U.S. business activity surged for the fourth consecutive month, growing at its fastest rate in five years. The data fueled worries about inflation, leading traders to significantly increase their probability of a second rate hike when the Federal Reserve meets in October.
Geopolitical events continued to dominate market focus, with the Strait of Hormuz and the conflict in the Middle East under discussion at the United Nations General Assembly. Investors also monitored Chinese leader Xi Jinping's U.S. visit this week, with artificial intelligence and trade expected to be on the agenda.