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Dow Jones, US Markets Plunge as 'Three-Headed Monster' Strikes
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CNBC TV18•29-09-2026, 04:53
Dow Jones, US Markets Plunge as 'Three-Headed Monster' Strikes
- •US markets, including Dow Jones, S&P 500, and Nasdaq, fell on Monday due to a combination of higher bond yields, oil prices, and a stronger US Dollar, dubbed the "three-headed monster."
- •The Dow Jones dropped 350 points, while the S&P 500 and Nasdaq Composite declined 0.8% and 0.9% respectively, with the Nasdaq 100 hitting a 10-session low.
- •Bond yields surged, with the US 10-year yield reaching a 19-year high of 5.25% and the 30-year yield hitting 5.57%, a high since 2004.
- •Crude oil prices touched $108 a barrel before paring gains, influenced by the East-West pipeline restoring capacity and reports of potential US concessions to Iran.
- •Michael "big short" Burry is shifting his investment strategy, replacing short positions in key AI stocks with "put" options, expressing bearish sentiment on companies like Micron and Palantir.
Key Questions Answered
Benchmark indices on Wall Street ended lower on Monday, September 28, due to a combination of higher bond yields, rising oil prices, and a stronger US Dollar, which David Waddell termed as the "three-headed monster".
The US 10-year bond yield rose to as high as 5.25% (a 19-year high), the 30-year bond yield jumped to 5.57% (a high since 2004), and the two-year yield climbed up to 4.95%.
Michael Burry stated in a blog post that the AI bubble may burst sooner than expected, leading him to replace his short positions in key AI stocks with "put" options while remaining bearish on names like Micron, Nebius, Palantir, and the iShares Semiconductor ETF.
