U.S. 10-Year Treasury Yield Hits 5.24% as Stocks Decline
The benchmark yield reached its highest level since June 2007, while Brent crude fluctuated around $100 a barrel ahead of PCE-related data and the September jobs report.
The U.S. 10-year Treasury yield reached 5.24% on Sept. 28, its highest level since June 2007, as broad stock losses and upcoming economic data raised pressure on rate-sensitive markets.
The benchmark yield rose for a fifth consecutive session. The 30-year Treasury yield reached 5.56%, its highest level since 2004, as higher long-term borrowing costs continued to weigh on U.S. financial markets.
The four tracked U.S. stock indexes declined. The Dow Jones Industrial Average fell 347 points, while the S&P 500 dropped 0.77% and the Nasdaq Composite lost 0.92%. The Philadelphia Semiconductor Index fell more than 1.6%.
Technology shares also weakened. Meta declined 4.79%, Amazon fell 1.41% and Microsoft lost 1.35%. Qualcomm dropped 7.17% to $187.48, while Arm fell about 9% and Marvell declined about 5%.
Brent crude fluctuated around $100 a barrel as shipping through the Strait of Hormuz had not resumed after unsuccessful U.S.-Iran talks. Markets also worried that inflation could prompt the Federal Reserve to raise interest rates.
NVIDIA gained 1.68% to $228.86 as many other technology stocks fell. The move provided a notable exception within the sector, although semiconductor shares broadly remained under pressure.
Investors are awaiting PCE-related data Wednesday and the September jobs report Friday. Economists expect about 90,000 new jobs and an unemployment rate of 4.1%.
A stronger-than-expected jobs report would increase expectations for an October rate hike. A weaker report could shift market concerns toward stagflation.
