On October 27, 2023, the S&P 500 Index ($SPX) fell by 0.42%, marking a 1.5-week low. Similarly, the Dow Jones Industrial Average ($DOWI) decreased by 0.21%, while the Nasdaq 100 Index ($IUXX) saw a drop of 1.17%. E-mini S&P futures (ESU26) were down 0.51%, and September E-mini Nasdaq futures (NQU26) declined by 1.31%. This decline in U.S. equities is attributed to rising global bond yields and increasing crude oil prices amidst ongoing tensions in the Middle East.
The rise in WTI crude oil to a three-week high has intensified inflation concerns, coinciding with the 10-year Japan JGB bond yield reaching a three-year peak of 2.967% and the 10-year German Bund yield climbing to a 15-year high of 3.262%. U.S. housing data also presented a mixed picture: July housing starts fell 12.4% month-over-month to 1.239 million, while building permits rose 5% to a five-month high of 1.443 million, surpassing expectations.
Market expectations indicate a 35% probability of a 25 basis point rate hike at the Federal Open Market Committee meeting scheduled for September 15-16. Overall, chipmakers and AI-infrastructure stocks are struggling due to the bond yield increases, while software stocks like Adobe Systems (ADBE) have gained over 3% amidst the market turbulence.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
