Trending
Market Update
Source: Newsmaker.id
US stock markets closed lower in Tuesday's trading (Sept. 15) as a surge in bond yields once again weighed on investor sentiment. The S&P 500 fell approximately 0.4%, the Dow Jones lost 328 points, and the Nasdaq declined 0.6%.
Market pressure intensified after the 10-year US Treasury yield hit its highest level in nearly two decades. Rising borrowing costs put further pressure on stock valuations, particularly for technology companies that rely heavily on financing and long-term growth expectations.
Escalating tensions in the Middle East further dampened sentiment. Risks of energy supply disruptions drove fuel prices higher and heightened inflation concerns. These conditions reinforced expectations that the Federal Reserve would raise interest rates by 25 basis points in its policy decision on Wednesday.
Shares of major technology companies were a key source of downward pressure. Alphabet fell about 1.3%, Microsoft declined 1.6%, Amazon lost 2%, and Oracle slumped 3.1% as rising yields stoked fears regarding funding costs in the tech sector.
However, some semiconductor stocks managed to rebound after facing pressure in the previous session. Nvidia rose about 0.6%, while AMD gained 2.2%. This recovery followed a period where chip stocks had been hit by concerns surrounding developments in artificial intelligence.
Newsmaker Analysis: Wall Street continues to face pressure from a combination of high yields, expensive oil, and increasingly hawkish Fed expectations. The market's future direction will depend heavily on the interest rate decision and signals from the Fed regarding potential further tightening. If yields remain high, the technology sector is likely to remain among the most sensitive areas.
Source: Newsmaker.id