September 30 Close: Major Indexes End Lower as Treasury Yields Hit Fresh Multi-Year Highs

Deep News
Yesterday

On Tuesday, U.S. stocks closed lower in choppy trading. Treasury yields climbed once again to multi-year highs, while consumer confidence fell to its lowest level since 2014 and job openings came in below expectations, further deepening market worries about the economic outlook.

The Dow Jones Industrial Average fell 131.59 points, or 0.26%, to 51,349.92. The S&P 500 slipped 12.85 points, or 0.17%, to 7,670.84. The Nasdaq dropped 22.84 points, or 0.09%, to 26,797.54. Bank stocks led the decline. JPMorgan Chase, Morgan Stanley and Bank of America all moved lower. The State Street Financial Select Sector SPDR ETF (XLF) also finished down.

AI hardware stocks rose broadly, with Lumentum up more than 5%, and Corning and Marvell Technology up more than 4%. Arm, Coherent and Ciena gained more than 3%, while SK Hynix added more than 2%. SpaceX rose 2.59%, with SpaceXAI Team Bots now in public beta for Teams and enterprise users. Oracle climbed nearly 4%, as NetApp and Oracle prepare to launch a native OCI storage service.

Most of the Magnificent Seven closed lower, though Meta gained more than 3% and Amazon edged slightly higher. Apple fell more than 2%, as new CEO Ternus pushes a comprehensive overhaul of the company. Tesla dropped more than 1%, while Google, Nvidia and Microsoft posted slight declines.

The 30-year U.S. Treasury yield climbed above 5.6%, touching its highest level since June 2002. The benchmark 10-year Treasury yield briefly broke above 5.29% during the session.

AI trading continued to draw investor attention. A previously reported leaked Anthropic IPO prospectus showed the AI lab targeting a valuation of as much as $2 trillion and warned that AI could pose an "existential risk to humanity." Anthropic has not yet formally filed publicly. Meanwhile, rival startup OpenAI shelved its frontier AI model due to safety concerns that arose during internal testing. The AI boom relies heavily on public listings from Anthropic and OpenAI. Earlier on Tuesday, investors reassessed conditions in the IPO market, and with bond yields surging, conditions did not improve. Health tech startup Oura shelved its IPO, originally planned for today, "due to uncertainty."

Meanwhile, oil prices slid as Saudi Arabia resumed exports through the East-West pipeline, and U.S. and Iranian officials met with mediators to revive on-and-off negotiations. At the close, November-delivery light crude futures on the New York Mercantile Exchange fell $3.22 to settle at $89.38 a barrel, a drop of 3.48%. November-delivery London Brent crude fell $2.69 to settle at $102.59 a barrel, a decline of 2.56%.

Economic data released Tuesday painted a gloomier picture of the U.S. economy ahead of Friday's nonfarm payrolls report, with consumer confidence falling to its lowest level since 2014. On the labor market front, job openings in August fell to 7.097 million, below economists' forecast of 7.228 million and below the prior month's revised 7.335 million.

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