Wall Street Slumps for Third Consecutive Day as Treasury Buyback Impact Remains Limited

Here is a look at the New York stock market.

Major U.S. stock indices closed lower for the third straight trading session.

The Nasdaq fell 0.64%, while the S&P 500 finished in the 7,600 range for the second consecutive day.

With all sectors except energy declining, industrials and consumer discretionary stocks dragged down the indices with losses of over 1%.

As the conflict in the Middle East escalated to extremes, Brent crude surged past the 100 dollar per barrel mark for the first time since last July.

Armed clashes between the two sides broke out simultaneously in both the Strait of Hormuz and the Red Sea, as the U.S. military struck Iranian oil tankers and Iran launched missile attacks on a U.S. military base in Jordan.

Meanwhile, the U.S. Treasury tripled the scale of its long-term Treasury buybacks to up to 6 billion dollars—three times the previous level—in an effort to stabilize the bond market, but the move fell short of market expectations.

Disappointment spread that government measures were insufficient to alleviate anxiety in the bond market, pushing the yield on the 10-year Treasury note above 4.85% during trading to reach its highest level since November 2023.

Among individual stocks, Meta surged over 6% after unveiling an innovative AI agent that performs tasks on behalf of users, while memory semiconductor stocks showed strength, with SK Hynix ADR skyrocketing more than 7%.

As the stock market continues to face downward pressure, the results of the Producer Price Index on the 10th and the Consumer Price Index on the 11th are expected to strongly influence the Federal Reserve's decision on additional interest rate hikes.
※ Please note: This article was translated by AI and may contain errors.