US Stocks Fluctuate Amid Interest Rate Hike Fears

The US stock market closed on September 18th with a mix of positive and negative performances. The Dow Jones Industrial Average fell by 0.13%, while the Nasdaq rose by 0.19% and the S&P 500 gained 0.06%. This ambiguity in the market is largely due to the recent increase in interest rates by the Federal Reserve, which has raised concerns about inflation and higher corporate financing costs.

The benchmark 10-year Treasury yield briefly moved to around 5%, its highest level since 2023, making fixed-income assets more competitive with equities while raising financing costs. The Nasdaq continued to display relative strength due to semiconductor and technology shares, but the Dow remained under pressure as bond yields moved higher.

Nvidia was among the main drivers of the market rally driven by artificial intelligence, with revenues of $96.22 billion representing a growth rate of 105.9% year over year. However, Netflix fell sharply after a Wells Fargo downgrade, and oil prices dropped for a third consecutive day amid easing worries of extended disruption to Saudi supplies.