Wall Street Mixed Despite Cooling Inflation as Upward Pressure on Bond Yields Persists

The three major U.S. stock indices closed mixed.

While the Nasdaq finished slightly higher, the S&P 500 fell 0.25%.

By sector, consumer staples, real estate, and healthcare all dropped by more than 1%.

Earlier in the day, the market breathed a sigh of relief as the personal consumption expenditures (PCE) price index for August rose 3.4% year-over-year, coming in below both market expectations and the previous month's figure.

However, despite the favorable news of stabilizing inflation, the yield on the benchmark 10-year U.S. Treasury note surpassed 5.3% during the session, and the 30-year Treasury yield surged to the 5.6% range, capping the upside for the stock market.

This was because upward pressure on long-term yields persisted as analyses suggested that, although inflation is being tamed, U.S. economic growth and the labor market remain robust.

In fact, the ADP private payrolls for September rose by 90,000, beating market expectations, and the final reading for second-quarter gross domestic product (GDP) was also revised upward, highlighting strong physical economic conditions.

Among individual stocks, large-cap tech shares held up relatively well, whereas Micron is currently declining in after-hours trading despite posting record-high earnings.

Tomorrow will feature the September Institute for Supply Management (ISM) manufacturing index, followed by Nike's earnings release after the market closes.

This has been a report from New York.
※ Please note: This article was translated by AI and may contain errors.