Equities end slightly lower as bond yields hold near multi-decade highs
SPY•U.S. stocks ended slightly lower as Treasury yields remained near multi-decade highs, with the 30-year yield reaching 5.6206% and the 10-year yield 5.293%. September consumer confidence fell to a nearly 12½-year low, while the Dow lost 0.26%, the S&P 500 fell 0.17% and the Nasdaq slipped 0.08%.
1. Yields and stocks
U.S. stocks closed modestly lower as investors weighed rising bond yields, Federal Reserve comments and upcoming inflation and labor-market data. The 30-year Treasury yield reached 5.6206%, its highest since June 2002, while the 10-year yield rose to 5.293%, its highest since June 2007. Yields eased from earlier highs, and expectations for a Fed rate hike of at least 25 basis points at its October meeting fell to 51.5% from nearly 70% earlier in the session.
2. Economic indicators
Job openings fell by 256,000 to 7.079 million in August, below economists’ 7.225 million estimate. The Conference Board said consumer confidence sank to a nearly 12½-year low in September. The Dow fell 131.59 points to 51,349.92, the S&P 500 lost 12.85 points to 7,670.84 and the Nasdaq declined 22.84 points to 26,797.54.
3. Company movers
CarMax rose 4.7% after reporting higher second-quarter profit and revenue. Fair Isaac fell 26.5% after the Federal Housing Finance Agency director said Fannie Mae and Freddie Mac would move to a single pricing grid. Anthropic’s IPO prospectus showed sharply higher growth over the last year alongside wider losses, and the company is targeting a valuation above $2 trillion.
