Rising Yields and Oil Prices Weigh Heavy on US Equity Markets

The US equity markets took a hit on September 23 due to rising Treasury yields and oil prices. The 10-year Treasury yield reached its highest level since July 2007, with a value of approximately 5.10%. This increase in yields weighed heavily on the major indexes, causing them to decline.

The Dow Jones Industrial Average fell by 0.68% to $51,511.59, while the Nasdaq Composite dropped by 1.13% to $26,936.04. The S&P 500 also declined by 0.75% to $7,706.03.

Precious metals such as gold and silver faced pressure due to the strengthening US dollar and rising Treasury yields. COMEX gold futures fell by about 1.2% to $4,322.70 per ounce, while silver futures declined roughly 2.4% to $64.93 per ounce.

Oil prices, however, rose as Iran's stance on the Strait of Hormuz became more stringent. November WTI crude futures (USOIL) increased by 1.81% to $92.16 per barrel, while November Brent crude futures (UKOIL) gained 3.86% to $103.08.