US stocks fell on the 23rd, weighed down by a sharp rise in long-term US interest rates and higher oil prices, with the Dow declining for a second straight session. Long-term interest rates rose to their highest level in about 19 years, while higher oil prices also heightened concerns over corporate earnings.
The Dow Jones Industrial Average fell $352.10 from the previous day to $51,511.59, while the Nasdaq Composite declined 308.24 points to 26,936.04, with both indexes retreating. The September composite PMI flash reading reached its highest level since July 2021, strengthening expectations of additional rate hikes by the Federal Reserve. The 10-year Treasury yield briefly reached 5.1329%, its highest level in about 19 years and 2 months. The dollar rose to ¥158.32 against the yen, while the dollar index reached a roughly two-month high.
The rise in long-term interest rates, against a backdrop of higher oil prices, intensified concerns over corporate earnings. Selling spread in response to the rise in long-term US interest rates, and expectations of additional Fed rate hikes weighed on the stock market. The S&P 500 fell 58.61, and other indicators also declined.
Crude oil prices rose amid uncertainty over the situation in the Middle East and supply-and-demand outlooks in the US and Europe. WTI settled at $92.16 and Brent at $103.08, as concern spread that higher oil prices would increase costs and pressure corporate earnings. The dollar's strength and the yen's weakness also left uncertainty surrounding the yen exchange rate.
Statements by senior Fed officials suggesting the possibility of additional rate hikes came in succession, making the gap between the Bank of Japan's monetary policy and US interest rates a focus of market attention. Views spread that the combination of higher oil prices and rising interest rates would determine future market trends.