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U.S. Treasury yields surge above 5% as strong economic data hits Wall Street FAST-MOVING
U.S. stock markets experienced a significant downturn on Wednesday as surging Treasury yields and strong economic data fueled inflation fears. The benchmark 10-year Treasury yield climbed above 5%, reaching levels not seen since 2007. This rise was driven by a S&P Global report showing U.S. business activity (PMI) hit its highest level in over five years, signaling a robust economy that may necessitate further interest rate hikes from the Federal Reserve.
Major indices retreated sharply: the Nasdaq Composite fell 1.1%, the S&P 500 dropped 0.8%, and the Dow Jones Industrial Average lost 0.7%. The technology sector was particularly impacted, with companies like Google and Amazon seeing notable declines.
Simultaneously, oil prices rebounded, with Brent crude rising 3.9% to $103.08 per barrel, adding to inflationary pressures. Federal Reserve Governor Michael Barr reinforced market concerns by stating that additional policy adjustments would likely be required to bring inflation back to the 2% target, given that current growth and labor market conditions remain strong.
Entities
Federal Reserve · Harris Financial Group · Iran · Michael Barr · Mortgage Bankers Association · Nasdaq · S&P 500 · S&P Global · U.S. Department of the Treasury · U.S. Treasury · US Treasury Department · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The Federal Reserve raised its benchmark interest rate by a quarter percentage point. nemosnewsnetwork.com · srnnews.com
- [● 2 SOURCES] The share of adjustable-rate mortgage (ARM) applications reached 9.8%. nemosnewsnetwork.com · srnnews.com
- [● 2 SOURCES] Total mortgage application volume declined nearly 2 percent for the week ending September 18. nemosnewsnetwork.com · srnnews.com
- [● 10 SOURCES] S&P Global's flash composite Purchasing Managers' Index (PMI) rose to 58.4 in September. www.fool.com · coinpaper.com · krdo.com · www.ot.gr · kioncentralcoast.com · +3 more
- [● 8 SOURCES] The benchmark 10-year Treasury yield climbed above 5 percent, reaching 5.12%. www.fool.com · yournews.com · coinpaper.com · krdo.com · kioncentralcoast.com
- [DISPUTED] The average 30-year fixed-rate mortgage interest rate rose to 7.12 percent. nemosnewsnetwork.com · srnnews.com
- [○ 1 SOURCE] The 5-year US Treasury yield exceeded 5% for the first time since 2007.
- [● 2 SOURCES] The US Treasury Department announced plans to purchase up to $6 billion in long-term public debt.
- [● 2 SOURCES] A $70 billion five-year Treasury auction yielded 5.033%, the highest since 2006.
- [● 13 SOURCES] The 10-year US Treasury yield reached 5.12%, the highest level since July 2007. krdo.com · kioncentralcoast.com · www.brasilemfolhas.com.br · nemosnewsnetwork.com · www.fool.com · +6 more
- [● 2 SOURCES] The 30-year Treasury yield reached approximately 5.4%, a level not seen since April 2002.
- [○ 1 SOURCE] The S&P Global preliminary manufacturing index for September showed the fastest expansion since July 2021.