The U.S. stock market rose on September 25, buoyed by strong performance in technology stocks and a decline in international oil prices, despite a sharp increase in Treasury yields.
According to the New York Stock Exchange, the Dow Jones Industrial Average closed up 478.64 points, or 0.93%, at 51,828.62. The S&P 500 gained 39.28 points, or 0.51%, finishing at 7,743.41, while the Nasdaq Composite rose 129.34 points, or 0.48%, to close at 27,068.72.
This week, the Dow increased by 0.3%, continuing its upward trend. The S&P 500 and Nasdaq also saw gains of 1.2% and 2%, respectively.
The rise in the stock market this week was led by technology stocks. The information technology sector of the S&P 500 surged 3.1%, marking the largest increase among all sectors. Notably, Meta Platforms saw a nearly 13% jump this week, driven by excitement surrounding its AI agent, Muse.
As diplomatic efforts between the U.S. and Iran gain momentum, expectations for the reopening of the Strait of Hormuz have also increased. This, coupled with falling international oil prices, has bolstered investor sentiment.
On this day, West Texas Intermediate (WTI) crude oil futures fell 2.33% to settle at $92.41 per barrel. Brent crude, the international oil benchmark, also dropped 2.14% to $104.32 per barrel.
In contrast, the bond market continued to see rising Treasury yields. The yield on the 10-year Treasury note reached its highest level since 2007, while the 30-year yield hit its highest since 2004. The 10-year yield rose slightly to 5.163%, and the 30-year yield increased to 5.488%.
CNBC reported that the rise in Treasury yields this week was attributed to hawkish comments from Federal Reserve officials, high energy prices due to the conflict in Iran, and a purchasing managers' index (PMI) that exceeded market expectations. According to CME Group's FedWatch, the futures market reflects a roughly 64% chance that the Fed will raise rates at its October meeting.
Meanwhile, investors are also focused on the outcomes of the recent U.S.-China summit. U.S. Trade Representative Katherine Tai stated on CNBC that “much more detail” regarding U.S.-China negotiations will be released on Monday. Earlier, Treasury Secretary Scott Vessen announced that the two countries agreed to extend their trade truce by two months.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.