New York stocks open mixed as 10-year Treasury yield holds near 5.3%
In short
New York's main stock indices opened mixed on October 5, with the Dow Jones Industrial Average down about 0.27% as the 10-year US Treasury yield held around 5.3%, a level Asia Economy described as the highest in several years. The S&P 500 and Nasdaq rose as technology and telecom shares gained. Outlets pointed to the Fed's September meeting minutes, due October 7, and to falling oil prices.
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New York's three main stock indices opened mixed on October 5, with the Dow Jones Industrial Average lower as high US Treasury yields weighed on the market, according to reports from Chosun Ilbo, Asia Economy and Yonhap. Yonhap put the Dow at 51,039.06, down 137.90 points or 0.27%, at 10:08 am local time, while the S&P 500 rose 20.03 points (0.26%) to 7,742.75 and the Nasdaq Composite gained 142.45 points (0.52%) to 27,333.32. Asia Economy, citing 10:10 am figures, reported the Dow at 51,040.51, the S&P 500 at 7,746.60 and the Nasdaq at 27,356.49. Chosun Ilbo reported the Dow down 0.25% at 51,051.23 as of 9:35 am, after opening at 51,199.25. Newsis published only a flash headline saying the market opened mixed while watching Treasury yields and oil prices. [ 1 , 2 , 3 , 4 ]
Benchmark Treasury yields stayed high. Asia Economy reported the 10-year yield rose 2 basis points to 5.30% and the 30-year yield rose 3 basis points to 5.663%, saying both had climbed to their highest levels in several years on continued inflation pressure and concern the Fed could keep rates high for a long period. Yonhap put the 10-year at 5.2910%, up 1.70 basis points, after an intraday high of 5.3100%, and said the US government's worsening fiscal position, large Treasury issuance and high oil prices were keeping yields elevated. Chosun Ilbo reported the 10-year yield rising to around 5.3%. [ 1 , 2 , 3 ]
Yonhap also reported September services PMI readings: S&P Global's gauge came in at 58.8, slightly above the 58.7 expected, while the ISM reading of 54.9 fell just short of the 55.0 expected. Asia Economy reported the Fed raised its policy rate by 0.25 percentage point last month and that investors are focused on minutes of the September FOMC meeting due on October 7 for the reasoning behind that decision and views on future policy. It added that weaker-than-expected employment data last week had eased concerns about another rate increase this month and given some relief to a market pressured by the yield surge. [ 2 , 3 ]
Oil prices fell. Asia Economy reported December Brent down 0.6% at $101.60 a barrel and November WTI down 1.4% at $89.75; Yonhap put near-month November WTI down 1.57% at $89.68. Yonhap also reported corporate news: C.H. Robinson Worldwide agreed to acquire transport broker RXO in a $5.8 billion stock-and-cash deal, sending RXO up 22.40%; PTC soared 34.90% after France's Schneider Electric said it would buy the software company in an all-cash deal valuing it at $22.6 billion; and Cerebras Systems rose 8.68% after OpenAI chief executive Sam Altman called it a close partner. [ 2 , 3 ]
Two market voices were cited. Citi strategist Beata Manthey told Asia Economy that global equities have risen about 12% this year to near record highs and would stay resilient even against macroeconomic shocks. Peter Anderson, founder of Anderson Capital, told Yonhap that many investors expect high Treasury yields to break the stock rally, but that he believed the market still has enough momentum to withstand further rate increases. [ 2 , 3 ]
Why it matters
High Treasury yields set the tone for the session: they raise borrowing costs and weigh on rate-sensitive shares, which the outlets reported as the reason the Dow fell while the tech-heavy Nasdaq gained. The next scheduled event the documents flag is the September FOMC minutes on October 7, which investors will read for signals on how long rates stay high. Because US equities and Treasury yields are global benchmarks, the session's moves carry beyond New York.
Key facts
- New York's three main indices opened mixed on October 5: the Dow fell while the S&P 500 and Nasdaq rose. [ 1 , 2 , 3 , 4 ]
- The Dow was down about 0.27% in the first hour, at roughly 51,039 to 51,051 depending on the outlet's snapshot. [ 1 , 2 , 3 ]
- The 10-year US Treasury yield traded around 5.29% to 5.30%, with the 30-year at 5.663%, levels Asia Economy described as the highest in several years. [ 1 , 2 , 3 ]
- Yonhap attributed the high yields to the US government's worsening fiscal position, large Treasury issuance and high oil prices; Asia Economy cited inflation pressure and concern the Fed could keep rates high for a long time. [ 2 , 3 ]
- September services PMI readings: S&P Global's gauge was 58.8 against 58.7 expected, while the ISM reading was 54.9 against 55.0 expected. [ 3 ]
- Investors are focused on the September FOMC minutes due October 7; the Fed raised its policy rate by 0.25 percentage point last month and weak jobs data eased worries about another increase this month, Asia Economy reported. [ 2 ]
- Oil fell: November WTI was down about 1.4% to 1.6% at roughly $89.7 a barrel, and December Brent was down 0.6% at $101.60. [ 2 , 3 ]
- Yonhap reported three corporate moves: C.H. Robinson's $5.8 billion stock-and-cash deal for RXO, Schneider Electric's $22.6 billion all-cash offer for PTC, and a gain in Cerebras Systems shares after OpenAI chief executive Sam Altman called it a close partner. [ 3 ]
Confirmed by several sources
Still unclear
- The exact 10-year Treasury yield differs between reports: 5.30% (Asia Economy), 5.2910% (Yonhap) and around 5.3% (Chosun Ilbo). The outlets took readings at different times while the market was still trading, and no document gives a closing level.
- Whether the Fed will raise rates again this month remains unresolved. Only Asia Economy states that weaker-than-expected jobs data eased those concerns, and no document reports a Fed decision.
- Cerebras Systems' 8.68% share gain and Sam Altman's comment about the company come from one outlet. Single-source market move and quotation, reported only by Yonhap.
- Chosun Ilbo's summary is cut off mid-sentence, so its S&P 500 and Nasdaq figures are not available. The feed summary is truncated; the other outlets supply those index levels.
- Newsis's article text does not cover the market story its headline describes. The text available under the Newsis headline concerns a separate story about hacking in the financial sector, so only the flash headline could be used.
What local media are saying
Timeline, local time
- Chosun Ilbo's snapshot (US Eastern time): the Dow is at 51,051.23, down 125.73 points or 0.25% from its open at 51,199.25, as the 10-year Treasury yield rises to around 5.3%. [ 1 ]
- Yonhap: Dow 51,039.06 (down 0.27%), S&P 500 7,742.75 (up 0.26%), Nasdaq 27,333.32 (up 0.52%); the 10-year Treasury yield is 5.2910% after touching 5.3100% intraday. [ 3 ]
- Asia Economy: Dow 51,040.51 (down 0.27%), S&P 500 7,746.60 (up 0.30%), Nasdaq 27,356.49 (up 0.61%); 10-year yield 5.30%, 30-year 5.663%. [ 2 ]
- Newsis publishes a flash headline saying the New York market opened mixed while watching Treasury yields and oil prices (Korean local time). [ 4 ]