Global Markets:
● Asian Stock Markets : Nikkei down 0.66%, Shanghai Composite down 0.35% Hang Seng down 1.36% ASX down 0.51%
● Commodities : Gold at $4,452.17 (-0.19%) Silver at $68.018 (-0.98%), Brent Oil at 101.01 (-0.21%), WTI Oil at 96.10 (0.06%)
● Rates : US 10-year yield at 4.846, UK 10-year yield at 5.2678, Germany 10-year yield at 3.4381
News & Data:
● (USD) ADP Weekly Employment Change 12.0K to 10.0K expected
Markets Update:
Stocks fell Wednesday as rising Treasury yields and surging oil prices continued to pressure investor sentiment, sending the three major indexes lower for a third straight session.
The Dow Jones Industrial Average dropped 405.41 points, or 0.77%, to 52,380.66. The S&P 500 declined 0.48% to 7,636.36, while the Nasdaq Composite slipped 0.64% to 26,253.34.
Treasury yields climbed after the Treasury Department announced plans to triple its buyback of longer-dated government debt to $6 billion. The 10-year Treasury yield rose to 4.857%, its highest level since November 2023. Investors had expected the buyback to be even larger, with some estimates reaching $7 billion or $8 billion.
Higher oil prices also weighed on markets as escalating tensions between the U.S. and Iran raised concerns about disruptions to Middle East energy supplies. Brent crude settled 3.36% higher at $101.21 a barrel, while West Texas Intermediate gained 3.25% to $96.05. Both benchmarks reached their highest closing levels since May.
Despite the pressure, Globalt Investments’ Thomas Martin said the market has remained relatively resilient despite concerns over higher rates and oil prices. However, he warned that extremely bullish equity sentiment and expectations for higher interest rates may be difficult to sustain together.
The latest oil rally followed another sharp increase Tuesday, while U.S. markets were closed Monday for the Labor Day holiday.
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