On August 24, the New York Stock Exchange closed mixed as weakness in major tech stocks offset the impact of falling U.S. Treasury yields.
According to the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose by 140.15 points (0.26%) to close at 53,417.16. The S&P 500 index fell by 21.51 points (0.28%) to finish at 7,652.86, while the Nasdaq composite dropped by 200.26 points (0.77%) to end at 25,980.19.
CNBC reported that the decline in semiconductor stocks weighed heavily on the overall market.
Notably, Nvidia, which is set to announce its earnings this week, fell 2.9%, marking its seventh consecutive day of losses, the longest losing streak since September 2022. Micron Technology plummeted 5.8%, while AMD and Broadcom also saw declines of over 3% and 2%, respectively.
U.S. Treasury yields fell as the Treasury Department considered using funds from the Treasury General Account (TGA) to purchase long-term bonds. Increased bond purchases would raise demand in the market, contributing to lower yields.
Specifically, the yield on the 10-year Treasury note dropped by more than 3 basis points to 4.704%. The 30-year bond yield also fell by over 4 basis points to 5.234%. Last week, the 30-year yield surpassed 5.3%, reaching its highest level in nearly 20 years.
Earlier, U.S. Treasury Secretary Scott Vessenet announced plans to at least double the scale of Treasury buybacks in the coming months. This raised expectations that the upward trend in long-term Treasury yields could stabilize, although concerns about rising global rates and inflation persisted, leaving market anxiety unresolved.
President Donald Trump announced plans to increase tariffs on Canadian automobiles, auto parts, and steel to 50% starting January 1, which also weighed on investor sentiment.
Additionally, new U.S. sanctions against Iran heightened market uncertainty. Concerns were raised that prolonged disruptions in Iranian oil supply could lead to rising international oil prices and increased inflationary pressures.
However, following the announcement of additional sanctions, international oil prices actually fell by over 2%. On the London ICE Futures Exchange, Brent crude for October delivery settled at $92.17 a barrel, down $2.22 (2.35%). Meanwhile, West Texas Intermediate (WTI) crude for October delivery closed at $85.01 a barrel, down $2.05 (2.35%).
* This article has been translated by AI.
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