US Treasury yields edged higher, with the 10‑year benchmark posting a 0.2% rise to 5.10% after peaking at 5.12% earlier in the session—its strongest level since July 2007. The 30‑year yield slipped 1 basis point to 5.399%, just shy of the 5.44% high it reached last week, the closest the 30‑year has trended to a 2004 peak.
The Dow Jones Industrial Average fell 167 points, or 0.3%, sliding to 34,200 points, while the S&P 500 dropped 0.2% to 4,200 points. Technology stocks weighed on the Nasdaq, which slipped 0.5% to 12,600 points, after a pullback in Oracle contributed to the sector’s softness.
US jobless claims fell to 197,000 in the week ended September 19, according to the US Department of Labor—one of the lowest levels recorded since 1969. The drop of 1,000 claims signals that layoffs remain rare across a broadly stable labour market, easing some pressure on the Fed’s inflation narrative.
New‑home sales in August accelerated 6.4% year‑on‑year to an annualised rate of 684,000 units, as reported by the Census Bureau. The uptick, driven by price cuts and sales incentives, suggests affordability constraints are easing, a welcome sign for the housing sector amid tightening monetary policy.
Crude oil prices surged more than 3% to above $106 a barrel, with Brent futures trading at $106.50 after a senior Iranian official signalled a potential expansion of the Middle‑East conflict. The geopolitical risk, coupled with the Houthi attacks on Saudi shipping lanes, has compounded market volatility.
Looking ahead, the Federal Reserve is expected to maintain its hawkish stance, with Fed Bank of Philadelphia President Anna Paulson hinting that modest further tightening may be warranted if inflationary pressures persist. Market participants will closely monitor the Fed’s next policy meeting and the upcoming earnings season for any shifts in risk appetite.