Wall Street ends lower, off record highs, as Treasury yields climb
SPY•Wall Street’s major indexes ended lower as the 30-year Treasury yield touched a 24-year high. The S&P 500 fell 0.23%, the Nasdaq lost 0.24% and the Dow dropped 0.69%.
1. Yields pressure stocks
All three major U.S. stock indexes closed lower as long-dated Treasury yields resumed climbing, a day after the S&P 500 and Nasdaq reached record closing highs. Brent crude briefly rose above $100 a barrel, and the 30-year Treasury yield touched a 24-year high.
2. Fed minutes show division
Minutes from the Federal Reserve’s September meeting, when it unanimously approved its first rate hike since July 2023, showed differing views on the rationale for the increase. Some participants cited energy-price shocks, while others pointed to demand-driven inflation. Markets priced in less than a 20% chance of another hike at the October meeting, down from 37.6% a week earlier.
3. Other market moves
The S&P 500 lost 17.78 points to 7,801.15, the Nasdaq Composite fell 66.50 points to 27,533.39, and the Dow dropped 355.91 points to 51,165.37. Housing stocks and homebuilders fell 2.3% and 2.9%, respectively, while chip stocks also ended lower. SpaceX shares retreated after reports that the company was seeking $40 billion in financing to buy Nvidia chips.
