Stock Market Today: Wall Street is volatile as bond market pressure continues to mount

NEW YORK (AP) – September is expected to be Wall Street’s worst month of the year due to a weak stock market. The S&P 500 rose 0.4%, emerging from its worst week in six months. The Dow Jones Industrial Average rose 43 points, and the Nasdaq Composite Index rose 0.5%. U.S. Treasury yields have risen again, near their highest levels in more than a decade. Stock prices have been sluggish recently as it becomes clear that the US Federal Reserve is likely to maintain high interest rates until next year. The Fed wants to ensure that inflation returns to its target.

This is the latest news. Previous articles from the Associated Press are below.

NEW YORK (AP) – Stocks were weak Monday, with September on track to be Wall Street’s worst month of the year.

The S&P 500 rose 0.2% in afternoon trading, emerging from its worst week in six months. As of 1:56 p.m. ET, the Dow Jones Industrial Average was little changed at $33,950, while the Nasdaq Composite was up 0.2%.

Stock prices have been sluggish recently as it becomes clear that the US Federal Reserve is likely to maintain high interest rates until next year. The Fed wants to ensure that high inflation returns to target levels, and last week said its rate cuts in 2024 would likely be lower than traders expected. Key interest rates are already at their highest levels since 2001.

Bond market yields have risen to their highest level in more than a decade, as there is widespread belief that interest rates will remain high for a long time. As a result, investors are less willing to pay high prices for all types of investments, especially those that are considered the most expensive or that make owners wait longer for significant future growth.

The yield on the 10-year U.S. Treasury rose to 4.53% from 4.44% as of late Friday, nearing its highest level since 2007. This level has significantly increased from about 3.50% in May and 0.50% about three years ago.

“Stocks are far better able to digest gradual increases in interest rates associated with growth than rapid increases due to other factors, such as inflation or Federal Reserve policy,” Goldman Sachs strategists led by David Kostin wrote in a note. ” he said.

The rise in yields is at the top of a long line of concerns weighing on Wall Street. Economies around the world look shaky, with oil prices soaring $20 a barrel since June, and the resumption of U.S. student loan repayments potentially weakening household spending, the economy’s biggest strength. be.

In the short term, the US government could be shut down again amid further political confrontations on Capitol Hill. But Chris Larkin, managing director of trading and investments at Morgan Stanley’s E-Trade, said Wall Street has weathered past shutdowns and that “history shows that past shutdowns have not had a significant impact on the market.” “It shows.”

On Wall Street, energy company stocks had the market’s biggest gains. Oil prices fell slightly on Monday, after earlier rising to about $90 a barrel. Exxon Mobil rose 1.3% and ConocoPhillips rose 1.7%.

Rising oil prices mean increased pressure on travel companies, which count fuel as their biggest cost. Southwest Airlines fell 1.5% and Norwegian Cruise Line fell 1.8%.

Shares of media and entertainment companies were mixed on Sunday after unionized screenwriters reached a tentative agreement to end a historic strike. There is no contract yet for the impressive actor.

Netflix rose 1%, while Walt Disney Co. fell 0.4%. Warner Bros. Discover fell 2.6%, the biggest decline in the S&P 500.

Amazon rose 1.8% after announcing an investment of up to $4 billion in Anthropic Inc., which will take a minority stake in the artificial intelligence startup. The company is the latest Big Tech company to pour money into AI in the race to profit from the opportunities presented by the latest generation of technology.

In overseas stock markets, indexes in many regions of Europe and Asia fell sharply. France’s CAC40 fell 0.9% and Germany’s DAX fell 1%.

In China, shares fell nearly 22% after troubled real estate developer China Evergrande said an investigation into one of its affiliates made it unable to raise further debt. That could jeopardize the company’s more than $300 billion debt restructuring plan.

China’s sluggish economic recovery has already removed a major engine of global growth.

Hong Kong’s Hang Seng shares fell 1.8%, and Shanghai shares fell 0.5%.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Stan Cho, Associated Press