U.S. stocks fell by late morning Sept. 23 as the 10-year Treasury yield rose 11 basis points to 5.08%, its highest in 19 years. At 11:45 a.m. ET, the S&P 500 was down 0.55%, the Nasdaq 0.91% and the Dow 0.54%.
September U.S. business activity grew for a fourth straight month, at its fastest pace in five years, fueling inflation concerns. Traders sharply increased the odds they assigned to a second Federal Reserve rate hike in October. Investors were also watching Middle East tensions and Chinese leader Xi Jinping’s U.S. visit, where AI and trade were on the agenda.
Gold fell 1.88% to $4,283.13, while energy was the only sector group to rise; basic materials and consumer cyclicals fell the most. CrowdStrike and Palo Alto Networks rallied as investors focused on their potential role in AI safety. KB Home slipped slightly despite beating earnings after warning of tougher housing conditions; the average U.S. 30-year fixed mortgage rate reached 7.12%, its highest in more than two years.
