US Stocks Plunge as Treasury Yields Climb Above 5.2%

US stocks closed lower across the board on Monday, September 28, as rising US Treasury yields weighed heavily on equity valuations. The Dow Jones Industrial Average fell 0.67% to 51,481.51, while the S&P 500 dropped 0.77% to 7,683.69. Tech stocks bore the brunt of the impact, with Meta plummeting 4.79% and Tesla falling 3.94%. However, energy stocks bucked the trend, with ExxonMobil rising 1.21%.

The sharp rise in yields was the primary driver of the decline, with the benchmark 10-year Treasury yield climbing above 5.2%. This has put pressure on rate-sensitive tech stocks, which have high valuations. Meanwhile, precious metals suffered heavy losses, with COMEX gold futures down 4% to $4,148.50 per ounce and silver futures down 5.82%.

European Central Bank President Christine Lagarde said a moderate policy response remains appropriate, despite the inflation surge. US-Iran negotiations over the Strait of Hormuz continue to advance, with both sides expected to meet again through mediators.