U.S. stock markets edged lower on October 7, as Treasury yields surged, affecting investor sentiment. The S&P 500 fell 0.23% to 7,801, while the Nasdaq Composite slipped 0.22% to 27,539. The Dow Jones Industrial Average lost 0.66%, closing at 51,180. Caterpillar was the biggest mover, dropping 5.7% after a broker downgrade, which contributed significantly to the Dow's decline.
Gold prices dropped 1.34% to $4,130.80 by the U.S. market close, while the 10-Year Treasury yield declined slightly to 5.27%. Utilities led the gains, while Real Estate lagged, and Technology remained a notable performer. Intel saw a rise on news about its Terafab project, and Nvidia attracted interest following reports of a potential multi-billion-dollar chip deal with SpaceX.
The Fed's September minutes had earlier lifted gold prices and reduced bond yields, but the overall market reaction was subdued. Micron Technology rose 4.1%, leading both the S&P 500 and Nasdaq higher. However, Nvidia and Space Exploration Technologies fell on reports of their chip deal, a counterintuitive reaction to what should have been positive news.
Analysts noted that the 30-year Treasury yield hitting a 24-year high was a key concern, as it raises the cost of borrowing across the economy. The day's movements were largely seen as a correction from recent record highs, with investors pulling back slightly.