US 30-year bond yield, highest since 2002...S&P 500 and Dow both fall

▲ US stock market, Wall Street, bear market/AI generated image

Major indexes on the New York stock market faced downward pressure as the US 30-year Treasury yield surged to its highest level since 2002.

According to financial investment media outlet StockTwits on September 29 (local time), the S&P 500 index and the Dow Jones Industrial Average closed lower, unable to overcome the burden of soaring Treasury yields. On this day, the S&P 500 fell 0.2%, the Dow index declined 0.3%, and the small- and mid-cap focused Russell 2000 index also dropped 0.4%. In contrast, the large-cap technology-focused Nasdaq 100 index rose 0.2%, showing a differentiated trend.

In the bond market, the sharp rise in long-term yields suppressed overall investor sentiment in the stock market. The 30-year US Treasury yield climbed to its highest point in 24 years since 2002, increasing the discount rate burden on risk assets. Ian Lyngen of BMO Capital Markets analyzed, "The conflict in the Middle East and inflation outlook are key macroeconomic narratives that will dominate US interest rate movements for some time." Meanwhile, Brent crude stabilized around $103 per barrel as the Donald Trump administration ordered the release of strategic petroleum reserves to curb surging oil prices.

Despite the shock of sharply rising interest rates, some technology stocks performed well based on individual positive news. NetApp Inc. (NTAP) rose 2.5% on the back of an announcement of AI infrastructure optimization, extending its winning streak to five consecutive trading days. Micron Technology Inc. (MU) also saw gains after JPMorgan issued a positive assessment ahead of its Q4 earnings announcement.

Experts diagnosed that in a phase where concerns about prolonged high interest rates pressure market liquidity, focusing on large-cap blue-chip stocks with solid earnings and financial health, rather than a rebound across the entire index, is important. Measures to stabilize oil prices and whether Treasury yields have passed their short-term peak are considered the biggest turning points that will determine the direction of the stock market in October.

[Article Key Summary]

-The 30-year Treasury yield hit its highest level since 2002, leading to a simultaneous decline in the S&P 500 and Dow indexes.

-Brent crude stabilized around $103 per barrel after the Trump administration ordered the release of strategic petroleum reserves.

-Performance-based technology stocks, such as NetApp rising for 5 consecutive days and Micron Technology gaining, performed well.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*