Wall Street Closes Lower as US Bond Yields and Oil Prices Surge

Wall Street Ends Lower

Major US stock indices declined following a fresh rally in crude oil prices and a surge in US Treasury yields.

The Dow Jones Industrial Average dropped 0.68%, or 351 points, to close at 51,512. The S&P 500 fell 0.75% to 7,706 points, while the Nasdaq Composite dropped 1.13% to 26,936 points.

Among the Dow's components, Salesforce (+2.1%) and Chevron (+1.3%) recorded the largest gains, whereas McDonald's (-5.1%) and Alphabet (-3.4%) posted the largest declines.

Macroeconomic Data and Bond Market Surge

On the macroeconomic front, US business activity expanded at its fastest pace in five years, with S&P Global's Composite PMI climbing to 58.4 points in September. This growth was driven by strong demand for new orders and job creation across both manufacturing and services.

Meanwhile, US Treasury yields tracked sharply higher. The yield on the 10-year Treasury note advanced 15 basis points to 5.12%, reaching a high last seen in July 2007. The 30-year yield rose 10 basis points to 5.40%, and the 2-year yield moved up 13 basis points to 4.91%.

Addressing the market shift, the OECD stated on Wednesday that explosive increases in government bond yields represent a "major concern" for public finances due to the growing share of spending absorbed by debt interest, urging governments to curb spending.

Commodities, Currency, and Foreign Policy

In commodity markets, Brent crude oil jumped 4.4% to $103.66 per barrel, and WTI crude gained 2.3% to $92.65 per barrel. Gold prices moved 1.3% lower to $4,321 per ounce.

In the foreign exchange market, the US dollar rose 0.5% against the euro to $1.1385.

Regarding diplomatic developments, Donald Trump stated yesterday that US officials met with Iranian officials on the sidelines of the UN General Assembly, describing the meeting as "very good."