The yield of long-term US treasury bond bonds hit a 16 year high on Wednesday, putting pressure on the stock market, which has been under pressure due to the Gaza conflict and corporate financial reports.
The yield of 10-year US treasury bond bonds rose to 4.902%, the highest closing level since July 2007. The S&P 500 index fell 1.3%. The Dow Jones index fell 332.57 points, or 1%. The Nasdaq Composite Index fell 1.6%.
In recent weeks, the rapid rise in bond yields has weakened the market's enthusiasm for stocks. Investors are still paying attention to the escalating Israeli Hamas war that could disrupt the global energy market. The mixed financial reports of companies have made the stock market outlook more complex.
Concerns about the potential expansion of the Israel Hamas war in the Middle East have pushed up oil prices. Brent crude oil rose 1.8% to $91.50 per barrel, the highest level for the month.
A series of quarterly financial reports reflect the challenges facing the banking industry. Morgan Stanley's stock price fell 6.8% after the company reported a decline in quarterly net profit, while its investment banking and trading businesses remained sluggish. U. The stock prices of some regional banks, such as S. Bancorp, have fallen after several banks reported being squeezed by rising interest and other fees.
Aviation stocks fell after United Airlines lowered its year-end earnings forecast, causing the company's stock price to drop 9.7%, marking its largest daily percentage decline since July 2022. Delta Air Lines and American Airlines also weakened.
Semiconductor stocks fell for the second consecutive day after the United States announced that it would significantly restrict the export of artificial intelligence chips, making it more difficult for American companies to sell products to the Chinese market. Nvidia fell 4%, Intel fell 1.2%, and Advanced Micro Devices fell 2.8%.