In the U.S. market on 28 September, the Dow fell $347.11 and the Nasdaq fell 248.34 points, posting declines for the first time in 3 trading days. Concerns over higher crude oil prices and rising long-term interest rates spread to the Tokyo market.
In the New York market on 28 September, the Dow Jones Industrial Average closed at $51,481.51, down $347.11 from the previous weekend, while the Nasdaq Composite closed at 26,820.38, down 248.34 points, marking its first decline in 3 trading days. The Nasdaq, with its high weighting of technology stocks, also showed weakness.
The market backdrop included geopolitical risks and surging resource prices, while failed talks between the United States and Iran on ending hostilities and persistently high oil futures prices dampened sentiment. This strengthened expectations of higher U.S. long-term interest rates in response to rising energy prices, and the 10-year Treasury yield rose into the 5.2% range, reaching its highest level in 19 years.
Among individual stocks, aerospace and defense equipment giant Boeing fell, while Salesforce, a major IT company, also declined. Meanwhile, funds flowed into defensive stocks less affected by the economic cycle, and household products giant P&G attracted buying.
The decline in U.S. stocks also affected the Nikkei 225 the following day, with the index falling sharply in the Tokyo market on the 29th. The yen weakened against the dollar against a backdrop of higher crude oil prices and movements in U.S. long-term interest rates, with trading at around the mid-¥157 range per dollar.