Stock Indices Come Under Renewed Pressure As US Treasury Yields Climb To Multi‑Year Highs

The US equity markets closed lower on Wednesday as Treasury yields surged to multi‑year highs, driven by strong macroeconomic data, weak demand at a government bond auction, and rising energy prices. By the end of the session, the Dow Jones (US30) fell 0.68%, the S&P 500 (US500) declined 0.75%, and the Nasdaq (US100) finished down 0.85%, despite recently setting a new all‑time high. Market pressure intensified after the release of S&P Global PMI indices, which showed an influx of new orders and a jump in input‑cost inflation to multi‑year peaks. This prompted traders to price in a higher probability of another Fed rate hike. As a result, rising borrowing costs weighed heavily on credit‑sensitive tech giants and AI leaders.

Germany’s DAX (DE40) fell by 0.66%, France’s CAC 40 (FR40) declined 0.39%, Spain’s IBEX 35 (ES35) dropped 0.62%, and the UK’s FTSE 100 (UK100) slipped 0.03%. European equities ended Wednesday’s session lower amid a sharp rise in Eurozone government bond yields to multi‑year highs. Market pressure was driven by growing investor confidence that the ECB will continue its tightening cycle. Sentiment shifted after Eurozone PMI indices exceeded expectations in both manufacturing and services, alongside survey data confirming that the surge in energy prices is feeding into corporate production costs.

On Wednesday, oil prices broke a five‑day losing streak and climbed above $92.5 per barrel amid persistent uncertainty surrounding US-Iran negotiations. Diplomatic rhetoric remains tense: Iranian President Masoud Pezeshkian told the UN General Assembly that Iran refuses to negotiate under pressure, while Iranian military officials warned they are prepared to retaliate if Donald Trump’s threats materialize. At the same time, markets are detecting signs of potential compromise following reports of productive diplomatic contacts. A limiting factor for oil prices is the partial restart of Saudi Arabia’s East-West gas pipeline, reducing supply‑disruption risks.

In Asia, Japan’s Nikkei 225 (JP225) was closed due to a banking holiday. China’s FTSE China 50 fell 0.71%, Hong Kong’s Hang Seng (HK50) declined 1.01%, while Australia’s ASX 200 (AU200) closed slightly higher at 0.09%.

The Australian dollar (AUD) weakened to $0.70, hitting a seven‑week low amid broad US dollar strength and renewed selling in global bond markets. The US dollar continues to benefit from strong domestic business activity and rising expectations of another Fed rate hike. The decline in the Australian dollar occurred despite positive labor‑market data: employment rose by 39,500 in August – nearly double expectations. However, the picture was mixed, as unemployment climbed to 4.6%, the highest level in five years.

On Thursday, the New Zealand dollar (NZD) held near $0.567, remaining at an eleven‑week low under pressure from broad US dollar strength. The Fed’s hawkish stance completely overshadowed similar expectations for the Reserve Bank of New Zealand (RBNZ). Market participants increased the probability of a third RBNZ rate hike at the October meeting to 87% (up from 20% at the start of the month) after Governor Anna Breman warned that high oil prices could push short‑term inflation above expectations.

• S&P 500 (US500) 7,706.03 -58.61 (-0.75%)

• Dow Jones (US30) 51,511.59 -352.10 (-0.68%)

• DAX (DE40) 25,410.63 -168.22 (-0.66%)

• FTSE 100 (UK100) 10,705.26 -3.07 (-0.03%)

• USD Index 101.09 +0.57 (+0.57%)

News feed for: 2026.09.24

• Japan Manufacturing PMI (m/m) at 03:30 (GMT+3) – JPY (MED)

• Japan Services PMI (m/m) at 03:30 (GMT+3) – JPY (MED)

• Australia Unemployment Rate (m/m) at 04:30 (GMT+3) – AUD (MED)

• Switzerland SNB Policy Rate at 10:30 (GMT+3) – CHF (HIGH)

• Switzerland SNB Monetary Policy Assessment at 10:30 (GMT+3) – CHF (HIGH)

• Sweden Riksbank Interest Rate Decision at 10:30 (GMT+3) – SEK (HIGH)

• Norway Norges Bank Interest Rate Decision at 11:00 (GMT+3) – NOK (HIGH)

• German ifo Business Climate (m/m) at 11:00 (GMT+3) – EUR (LOW)

• Canada Retail Sales (m/m) at 15:30 (GMT+3) – CAD (MED)

• US Initial Jobless Claims (w/w) at 15:30 (GMT+3) – USD (MED)

• US New Home Sales (m/m) at 17:00 (GMT+3) – USD (MED)

• US Natural Gas Storage (w/w) at 17:30 (GMT+3) – XNG (HIGH)

• Mexico Banxico Interest Rate Decision at 22:00 (GMT+3) – MXN (HIGH)