Stories
US Stocks Fall As September Inflation Hits 3.7% And Treasury Yields Rise
- •The S&P 500 and Nasdaq Composite declined while the Dow Jones Industrial Average gained as September inflation came in hotter than expected at 3.7% year-on-year.
- •US Treasury yields climbed following the inflation report, with the 10-year yield rising to 5.293% and adding pressure on technology and growth stocks.
- •ASML reported record third-quarter sales and raised its outlook due to strong artificial intelligence demand, while Bank of America shares fell after reporting a profit decline.
- •Asian markets ended mixed while European equities traded higher as investors assessed the latest consumer price data and corporate earnings.
Key Questions Answered
The US consumer price index rose 3.7% year-on-year in September, coming in above economists' expectations of 3.6%. Following the hotter-than-expected inflation data, the S&P 500 fell 0.4% and the Nasdaq Composite shed 0.7%, while the Dow Jones Industrial Average gained 102 points.
US Treasury yields climbed following the inflation data, pushing borrowing costs higher and weighing on equities, particularly technology shares. The 10-year Treasury yield rose more than seven basis points to 5.293%, and the 30-year yield advanced more than four basis points to 5.609%.
Bank of America shares fell sharply after the lender reported a 17% year-on-year decline in third-quarter profit. The drop was driven by a $1.2 billion regulatory penalty and a slowdown in its Wall Street business, which offset higher lending income.
