Nasdaq Closes at 26,939 as Dow Falls 161 Points on 5.15% Treasury Yield Surge

Mumbai, Sept 25: US equities ended the closing session mixed on Thursday as a sharp surge in Treasury yields and elevated crude oil prices weighed on the Dow Jones Industrial Average and the S&P 500, while the Nasdaq Composite managed a marginal gain.  

The Dow Jones Industrial Average fell 161.61 points, or 0.31%, to 51,349.98, the S&P 500 dropped 1.90 points, or 0.02%, to 7,704.13, and the Nasdaq Composite edged up 3.34 points, or 0.01%, to 26,939.37.  

The session reflected movements across fixed income, commodities and currency markets as investors assessed stronger-than-expected economic data and geopolitical developments in the Middle East. 

Dow Jones Falls 161 Points as Treasury Yields Surge Across All Maturities 

The Dow Jones Industrial Average opened at 51,415.75 and closed at 51,349.98, losing 161.61 points, or 0.31%. The index touched an intraday high of 51,485.97 and a low of 51,124.02, compared with its previous close of 51,511.59. Trading volume stood at 386,960,600, while the average volume was 484,359,523. The index’s 52-week high stood at 54,744.33, while the 52-week low was 45,057.28. 

Within the Dow, shares of Visa (V) rose 1.78%, American Express (AXP) gained 1.23%, UnitedHealth (UNH) added 0.99%, Johnson & Johnson (JNJ) moved up 0.62%, Travelers (TRV) gained 0.60% and Cisco (CSCO) rose 0.52%. On the downside, Walmart (WMT) fell 2.67%, IBM (IBM) dropped 2.44%, Boeing (BA) declined 1.58%, Home Depot (HD) lost 1.54%, Goldman Sachs (GS) slipped 1.40%, Procter & Gamble (PG) fell 1.12%, Caterpillar (CAT) declined 0.83% and Microsoft (MSFT) slipped 0.53%.  

The session followed the broad move higher in Treasury yields, which affected trading across major US equities. The Dow’s decline came as investors assessed the implications of stronger-than-expected business activity data and firmer oil prices. 

S&P 500 Slips 1.90 Points as 10-Year Yield Touches 5.15% Since 2007 

The S&P 500 opened at 7,666.99 and ended at 7,704.13, losing 1.90 points, or 0.02%. During the session, the index reached a high of 7,719.01 and a low of 7,662.57, against its previous close of 7,706.03. Volume was 2,895,072,000, while average volume stood at 5,124,655,714. The index remained about 1.4% below its all-time high. 

Among S&P 500 constituents, Intel (INTC) rose 3.91%, AMD (AMD) gained 2.40%, Meta Platforms (META) added 4.50%, Eli Lilly (LLY) advanced 2.85%, Disney (DIS) moved up 2.02%, Verizon (VZ) gained 1.64% and Alphabet (GOOGL) rose 1.40%. On the decline, Oracle (ORCL) fell 3.49%, Intuit (INTU) dropped 3.39%, DeLL (DELL) lost 2.50%, IBM (IBM) declined 2.44%, Walmart (WMT) slipped 2.67%, QCOM (QCOM) fell 1.51% and Home Depot (HD) lost 1.54%.  

The broad-based decline came as the yield on the 10-year Treasury note jumped to 5.15%, its highest level since July 2007, while Brent crude futures climbed above $105 per barrel. 

Nasdaq Composite Gains 3.34 Points as Technology Shares Show Mixed Moves 

The Nasdaq Composite opened at 26,734.51 and closed at 26,939.37, marking a gain of 3.34 points, or 0.01%. Its intraday high stood at 26,971.04, while the low was 26,706.14, against its previous close of 26,936.04. Technology and growth-oriented shares including Intel (INTC) at +3.91%, AMD (AMD) at +2.40% and Meta Platforms (META) at +4.50% recorded notable gains, contributing to the index’s daily performance. The technology-heavy benchmark responded to the sharp rise in Treasury yields and elevated oil prices during the session. 

Among Nasdaq-100 constituents, Intel (INTC) rose 3.91%, AMD (AMD) gained 2.40%, Meta Platforms (META) added 4.50%, Cadence Design Systems (CDNS) advanced 4.16%, Synopsys (SNPS) moved up 2.88%, Datadog (DDOG) gained 2.16% and Shopify (SHOP) rose 2.08%.  

On the downside, Arm Holdings (ARM) fell 7.88%, Western Digital (WDC) dropped 4.85%, Intuit (INTU) declined 3.39%, SanDisk (SNDK) lost 3.44%, Micron (MU) slipped 0.82%, Broadcom (AVGO) fell 1.30% and Qualcomm (QCOM) declined 1.48%, pacing Nasdaq 100 decliners. The index gave back most of its gains from the prior two record closes but managed to close marginally higher. 

Russell 2000 Falls 0.12% as Smaller Stocks Track Broader Market Decline 

The Russell 2000 opened at 2,834.73 and closed at 2,835.37, losing 3.29 points, or 0.12%. It recorded an intraday high of 2,838.63 and a low of 2,810.75, against its previous close of 2,838.66. Movements among smaller-cap companies contributed to the benchmark’s performance as elevated Treasury yields and rising oil prices influenced broader trading. The index remained well below its 52-week high of 3,069.71. 

Also Read: What Is the New York Stock Exchange (NYSE)?

S&P 100 Gains 6.48 Points as Large-Cap Shares Track Mixed Market 

The S&P 100 opened at 3,820.02 and finished at 3,850.19, recording a gain of 6.48 points, or 0.17%. The index traded between 3,820.02 and 3,852.09 during the session, against its previous close of 3,843.71. The index’s 52-week high stood at 3,888.97, while the 52-week low was 3,074.00. Movements in major large-cap constituents, including Meta Platforms at +4.50%, Alphabet at +1.40% and Visa at +1.78%, contributed to its daily performance as markets responded to rising Treasury yields. 

Dow Composite, Transport And Utility Indices Reflect Broad Market Weakness 

The Dow Jones Composite Average opened at 16,010.74 and closed at 15,933.61, losing 96.86 points, or 0.60%, after moving between a high of 16,033.29 and a low of 15,907.28, against its previous close of 16,030.47. The Dow Jones Transportation Average ended at 19,477.71, compared with an opening level of 19,726.22, representing a 1.33% decline from its previous close of 19,739.91.  

The Dow Jones Utility Average closed at 1,007.32, falling 0.81% from its opening level of 1,017.16, against its previous close of 1,015.54. Movements in relevant constituents reflected the broader market trend as rising yields and oil prices weighed on trading. 

Philadelphia Semiconductor Index Falls 41.74 Points as Chip Stocks Retreat 

The Philadelphia Semiconductor Index (SOX) opened at 12,309.09 and closed at 12,492.54, losing 41.74 points, or 0.33%. Its intraday high was 12,517.92, while the low was 12,258.39, against its previous close of 12,534.27.  

Semiconductor-related constituents such as Arm Holdings (ARM) at -7.88%, Western Digital (WDC) at -4.85%, SanDisk (SNDK) at -3.44% and Intel (INTC) at +3.91% contributed to the sector benchmark’s daily performance amid elevated bond yields and oil prices. The index’s 52-week high stood at 14,655.29, while the 52-week low was 6,125.00. 

NYSE Composite Changes 0.055% as Broader Shares Track Treasury Yields 

The NYSE Composite Index opened at 23,848.25 and closed at 23,835.22, recording a decline of 13.03 points, or 0.055%. The index traded between 23,887.57 and 23,760.41 during the session, against its previous close of 23,848.25.  

Movements across broader market segments contributed to its performance as rising Treasury yields and elevated crude oil prices shaped US equity trading. The index’s 52-week high stood at 24,866.75, while the 52-week low was 20,906.44. 

S&P MidCap 400 And SmallCap 600 Move Lower as Yields Weigh Broadly 

The S&P MidCap 400 opened at 3,644.93 and closed at 3,637.83, moving 14.91 points, or 0.41%, with an intraday range of 3,650.75 to 3,620.47, against its previous close of 3,652.74. The S&P SmallCap 600 opened at 1,679.97 and ended at 1,677.64, losing 4.21 points, or 0.25%, after trading between 1,682.48 and 1,666.30, against its previous close of 1,681.85. The two benchmarks reflected movements among mid- and small-cap shares as elevated Treasury yields and rising oil prices affected the wider market. 

Also Read: How to invest in US stocks

Oil, Yields and Middle East Tensions Drive The Session’s Market Direction 

The principal market catalyst was the surge in Treasury yields to multi-decade highs. The 10-year Treasury yield jumped to 5.15%, its highest level since July 2007, while the 30-year yield touched 5.446%, a level not seen since June 2004. The 2-year yield touched 4.897%, its highest since 2023. The yield surge followed stronger-than-expected US business activity data, with the September flash PMI for services coming in at 58.7, the strongest reading in nearly five years. A $70 billion auction of 5-year notes cleared at 5.033%, the steepest yield since June 2006, with a bid-to-cover ratio of just 2.21. 

Elevated oil prices also shaped the session. Brent crude futures rose 2.5% to settle at $105.69** per barrel, while West Texas Intermediate crude gained **2.3%** to **$94.30 a barrel. The move followed reports that US and Iranian negotiators were exploring a phased deal to reopen the Strait of Hormuz, which would involve Tehran allowing shipping traffic to transit in exchange for Washington lifting its economic blockade. A Houthi missile attack on Saudi Arabia earlier in the week had revived fears of supply disruptions, with Brent crude briefly touching $107 per barrel. 

Federal Reserve officials struck a hawkish tone during the session. Philadelphia Fed President Anna Paulson stated that additional interest rate hikes may be needed to bring inflation back to the central bank’s 2% target, noting that inflation “remains stubbornly elevated.” New York Fed President John Williams said it would be a “reasonable” expectation for another rate hike by year-end. Traders priced in a 66% chance of a quarter percentage-point rate hike at the Fed’s October policy meeting, according to the CME FedWatch tool, up from roughly 55% a week earlier. US and Chinese officials extended their trade truce by two months, until January 10, following Treasury Secretary Scott Bessent’s announcement. 

VIX Rises 1.71% as Market Volatility Indicator Moves Higher 

The CBOE Volatility Index (VIX) changed 1.71% to 15.44, compared with its previous close of 15.18. The index measures expected volatility in the S&P 500 over the coming 30 days. Its movement during the session coincided with the sharp rise in Treasury yields and elevated oil prices. The VIX touched an intraday high of 16.57 and a low of 15.34. The index’s 52-week high stood at 35.30, while the 52-week low was 13.38. 

S&P 500 Sectors Show Broad Decline Across Ten Of Eleven Groups 

Performance across the 11 S&P 500 sectors was broadly lower. Communication services recorded the strongest move at +1.92%, while materials declined 1.01%. The remaining sectors recorded the following moves: Information Technology declined 0.66%, Consumer Discretionary fell 1.63%, Consumer Staples declined 0.90%, Financials slipped 0.34%, Health Care gained 0.31%, Industrials fell 0.83%, Energy rose 1.00%, Utilities declined 1.87%, and Real Estate fell 1.50%. Ten of the 11 sectors ended in negative territory, with energy being the sole gainer as oil prices rallied. 

Magnificent Seven Mixed as Meta Gains 4.50% And Alphabet Declines 

Among the Magnificent Seven, Meta Platforms (META) moved +4.50%, Microsoft (MSFT) changed -0.53%, and Nvidia (NVDA) recorded -0.41%. Apple (AAPL) slipped -0.27%, Amazon (AMZN) gained +0.09%, Alphabet (GOOGL) declined -1.40%, and Tesla (TSLA) fell -0.59%. Their daily movements contributed to the performance of major US equity benchmarks. The Roundhill Magnificent Seven ETF (MAGS) rose 0.8% during the session. 

Also Read: US Stock Market Timings

Semiconductor, Financial And Energy Stocks Show Mixed Daily Moves 

Semiconductor stocks were mixed, with the Philadelphia Semiconductor Index moving -0.33%. Financial stocks recorded mixed moves, with Visa at +1.78% and Goldman Sachs at -1.40%. Energy stocks moved higher alongside changes in crude oil prices, with Exxon Mobil at +0.50%, Chevron at +0.03% and ConocoPhillips at +0.98%.  

AI and growth stocks were mixed, with movements among relevant constituents contributing to the technology-heavy indices. Storage-related stocks including Western Digital (WDC) at -4.85% and SanDisk (SNDK) at -3.44% paced declines in the memory segment. 

Jobless Claims At 197,000 Signal Labour Market Stability During Session 

The latest economic data showed initial jobless claims at 197,000 for the week ending September 19, compared with a revised 198,000 in the prior week and below the 201,000 consensus estimate. Continuing claims stood at 1.72 million for the week ending September 12.  

The releases provided the latest information on employment during the session. The data indicated that the labour market remained broadly stable, with claims hovering near 57-year lows. The unemployment rate remained steady at 4.1% this month, according to the report. 

Federal Reserve and Treasury Yields Set the Rate Backdrop For Session 

The Federal Reserve remained a key focus as markets assessed hawkish commentary from multiple officials. Philadelphia Fed President Anna Paulson stated that additional interest rate hikes may be needed to bring inflation back to the central bank’s 2% target, noting that inflation “remains stubbornly elevated.” New York Fed President John Williams said it would be a “reasonable” expectation for another rate hike by year-end. The Fed raised its benchmark rate to 3.75%-4% on September 20, and 16 of 18 FOMC members indicated they anticipate at least one more hike before the end of 2026. 

The 2-year US Treasury yield stood at 4.897%, while the 10-year Treasury yield stood at 5.15%. The 30-year yield was at 5.446%. The yield curve steepened as strong economic data and hawkish Fed commentary affected Treasury trading. The 10-year selloff marked the Treasury market’s worst single-day move in 18 months. Mortgage rates rose to 7.03% this week, up from 6.95% last week, the highest level since January 2025, according to Freddie Mac. 

Brent Hits $107 as Middle East Supply Risks Lift Oil 2.5% And Weigh On Gold 

Brent crude traded at $105.69, up 2.5%, while WTI crude stood at $94.30, gaining 2.3%. Gold traded at $4,265.50 per ounce, down 0.5%, while silver fell 0.13% to $64.356. Natural gas declined 0.6% to $3.004 per million British thermal units. Diesel averaged $6.51 per gallon, $2.82 above last year. 

Oil prices were volatile as geopolitical tensions raised concerns about further supply disruptions. An adviser to Iran’s supreme leader warned that Iran and its Houthi allies could open another front against Red Sea energy supplies, adding pressure alongside the Strait of Hormuz. A commercial ship was hit in the Strait on Wednesday, killing one Indian crew member. 

Brent briefly reached $107 per barrel after a Houthi missile attack on Saudi Arabia renewed fears of supply disruptions. Prices later eased after reports that US and Iranian negotiators in New York were discussing a phased agreement to reopen the Strait of Hormuz. Under the reported proposal, Tehran could allow shipping traffic through the Strait in return for Washington easing its economic blockade. 

Diesel prices remained elevated at $6.51 per gallon. US Energy Secretary Chris Wright contacted executives at major American refiners to discuss support for a voluntary restriction on diesel exports as the Trump administration considered alternatives to a temporary ban. Business and energy groups warned that an export ban could reduce production and push prices higher. 

Gold moved lower as higher oil prices added to inflation concerns and hawkish signals from the US Federal Reserve strengthened expectations of higher interest rates. Spot gold fell 0.5% to $4,265.50, its lowest level since September 16. December gold futures also settled 0.5% lower at $4,298. 

Also Read: What Are Fractional Shares? 

Dollar Climbs 0.2% to 101.29 as 66% Fed Rate-Hike Odds Pressure Major Currencies 

The US Dollar Index (DXY) rose 0.2% to 101.29 as stronger manufacturing data and hawkish comments from Federal Reserve officials increased expectations of further rate hikes. EUR/USD fell to 1.1378, its lowest level in two months, while USD/JPY stood at 157.9 and GBP/USD at 1.3231, close to a three-month low. 

The Australian dollar declined 0.07% to $0.7035, while the New Zealand dollar was little changed at $0.5676. The dollar’s strength was also supported by higher Treasury yields. The 10-year US Treasury yield reached 5.15%, its highest since July 2007, while the 30-year yield touched 5.446%, a level not seen since June 2004. 

Markets priced a 66% probability of a 25-basis-point Fed rate hike at the October meeting, up from around 55% a week earlier, according to CME FedWatch. Higher US yields supported the dollar, while the euro and pound weakened and the yen remained under pressure as the US-Japan interest rate differential persisted. 

The closing session was shaped by the 10-year Treasury yield reaching 5.15%, its highest since July 2007, alongside Brent crude settling at $105.69. The Dow Jones fell 0.31%, the S&P 500 declined 0.02%, and the Nasdaq Composite gained 0.01%. These figures provide a factual summary of the session and its key market developments. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

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• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

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• https://www.nasdaq.com/market-activity/index/sox 
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