10-year Treasury yield jumps as September core inflation comes in hotter than expected
Traders raised the odds of another Federal Reserve rate hike to 35% as the 10-year yield briefly topped 5.32%, pressuring AI shares.
- On Wednesday, the Nasdaq dropped 1 percent to 26,934.74 and the S&P 500 declined 0.8 percent to 7,746.29 following negative market reaction to inflation data.
- U.S. consumer costs rose 3.7% last month versus a year earlier, accelerating from 3.4% in August and exceeding the 3.6% economists expected. The 10-year Treasury yield jumped to 5.23%.
- Traders now see a 39% chance the Federal Reserve will raise rates at its next meeting in two weeks, up from 22% probability a day earlier, according to CME Group data.
- Bank of America fell 6.3% after reporting weaker third-quarter profit and revenue, compounded by a $1.2 billion U.S. Treasury Department fine. BlackRock rose 0.5% on stronger earnings.
- Despite inflation concerns, Vanguard Senior Economist Adam Schickling said inflation should slow as Americans become more price-sensitive, though "patience will be required." Signals suggest the U.S. economy is still growing.
280 Articles
280 Articles
(Seoul = Yonhap News) Reporter Kim Yoo-ah = iM Securities pointed out that U.S. Treasury bonds and the Japanese yen have recently shown a simultaneous strong rally, indicating a preference for safe assets for the time being...
Concerns about the huge capital spending of technology giants, rising oil prices and pressure on the debt market from what is happening in France are weighing on stock markets around the world. At the same time, investors are returning to the traditional safe haven: US government bonds.
Channel News Asia
PressNewsAgencyCNA Explains: Why are AI stocks tumbling when demand is still booming?
AI demand is booming, chipmakers are posting record profits and tech giants are continuing to invest hundreds of billions. So why are semiconductor stocks tumbling? CNA speaks to experts about what's driving the sell-off.
The Japanese indicator Nikki fell today on Monday, with continuing concerns about assessments in the technology sector ahead of significant financial results this week
Coverage Details
Bias Distribution
- 61% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
