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Update: US Equity Indexes Mixed as Benchmark Treasury Yield Rises 5%

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(Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes traded mixed in the final leg of trading while government bond yields rebounded, with the 10-year hovering near its highest level in almost two decades.

The Nasdaq Composite rose 0.2% to 26,460.5, and the S&P 500 edged up less than 0.1% to 7,642.1 ahead of Friday's close. The Dow Jones Industrial Average slipped 0.2% to 51,688.5. Materials and utilities led decliners.

"We now expect two more hikes from the [Federal Reserve], and our commodity analysts see energy markets facing a convergence of supply chain disruptions," Morgan Stanley said in a note after Wednesday's 25-basis-point rate increase. "A higher expected path for oil prices means disinflation will be slower, and more restrictive policy also weighs on growth in 2027."

Morgan Stanley expects rate increases of the same magnitude in December and March, to a target range of 4.25 to 4.50%. "They hold there through the end of next year."

US Treasury yields rose after midday. The 10-year yield jumped 5.5 basis points to 5%, trading near its strongest level since 2007. The two-year yield climbed 5.5 basis points to 4.75%, a multi-month high.

The front-month US West Texas Intermediate crude oil contract fell 2.3% to $99.61 per barrel, while the global benchmark North Sea Brent declined 1.6% to $103.09 per barrel.

What else is happening in Japan?

Japan

US Equity Markets End Higher After Government Bond Yields, Crude Oil Prices Fall

US equity indexes ended higher Thursday as government bond yields dropped after the Federal Reserve reaffirmed plans to tame inflation and amid a decline in crude oil prices.* China has privately asked Tehran to help rein in Yemen's Houthis after an appeal to Beijing by Saudi Arabia following the Iran-backed group's military blitz in the past week, Reuters reported, citing three Iranian sources familiar with the matter.* In the week ended Sept. 12, 196,000 people filed for unemployment insurance, down 10,000 from the prior week. The consensus was 207,000, according to a Jefferies note.* October West Texas Intermediate crude oil fell $1.19 to settle at $101.24 per barrel, while November Brent crude, the global benchmark, was last seen down $1.72 at $104.11.* Generac (GNRC) shares rose roughly 18%, the top gainer on the S&P 500, a day after signing a long-term supply deal with Amazon (AMZN) to provide backup power generators. Canaccord Genuity also raised its price target on the company while keeping its buy rating.* Paramount Skydance (PSKY) will meet with the Writers Guild of America and state attorneys general who are seeking to block its merger with Warner Bros. Discovery (WBD) for a two-day, court-mandated settlement conference starting Oct. 14, according to media reports citing a court filing Wednesday. Paramount Skydance shares fell about 4.6%, among the worst performers on the S&P 500.

Dow JonesNasdaq CompositeS&P 500$AMZN$GNRC$PSKY$WBD
Japan

Update: US Equity Indexes Rise as Fed's Commitment to Controlling Inflation Sinks Treasury Yields

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes rose as government bond yields slumped after the Federal Reserve reaffirmed its commitment to taming inflation and as crude oil prices fell.The Nasdaq Composite jumped 1.7% to 26,429.1, the S&P 500 climbed 1.2% to 7,641.4, and the Dow Jones Industrial Average advanced 0.6% to 51,786.8 ahead of Thursday's close.The US Federal Reserve raised its benchmark lending rate by 25 basis points in a unanimous vote on Wednesday to combat sticky inflation, while signaling another hike later this year. The Federal Open Market Committee lifted the fed funds rate to 3.75% to 4%, the first time it has tightened monetary policy since July 2023."After more than five years of significantly elevated inflation, a period which included a rate cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Lindsey Piegza, Stifel chief economist, said in a note.US Treasury yields retreated after midday. The 10-year yield fell 7.1 basis points to 4.93%, and the two-year yield slid 5.4 basis points to 4.67%.In a category of stocks with market capitalization exceeding $200 billion, Intel (INTC), Arm (ARM), and Advanced Micro Devices (AMD) were among the top 10, according to data compiled by Finviz.The front-month US West Texas Intermediate crude oil contract dropped 1.3% to $101.15 per barrel, and the global benchmark North Sea Brent fell 1.8% to $103.91 per barrel.

Dow JonesNasdaq CompositeS&P 500$AMD$ARM$INTC
Japan

US Equity Indexes Rise as Treasury Yields Slump After Fed Reaffirms Commitment to Controlling Inflation

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes rose as government bond yields slumped after the Federal Reserve reaffirmed its commitment to taming inflation while tightening policy, and as crude oil prices fell.The Nasdaq Composite jumped 1.5% to 26,354.1, the S&P 500 climbed 0.9% to 7,617.4, and the Dow Jones Industrial Average advanced 0.4% to 51,677.9 after midday Thursday.The US Federal Reserve raised its benchmark lending rate by 25 basis points in a unanimous vote on Wednesday to combat sticky inflation, while signaling another hike later this year. The Federal Open Market Committee lifted the fed funds rate to 3.75% to 4%, the first time it has tightened monetary policy since July 2023."After more than five years of significantly elevated inflation, a period which included a rate cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Lindsey Piegza, Stifel chief economist, said in a note.US Treasury yields retreated after midday. The 10-year yield fell 5.1 basis points to 4.95%. The two-year yield slid 4.2 basis points to 4.69%.Meanwhile, China has privately asked Tehran to help rein in Yemen's Houthis after an appeal to Beijing by Saudi Arabia following the Iran-backed group's military blitz in the past week, three Iranian sources familiar with the matter told Reuters. Riyadh turned to China for help after the Houthis made rapid advances along the Red Sea coast and around the Bab el-Mandeb Strait, moves that have left Saudi oil exports and shipping more exposed, the sources told the news agency.The front-month US West Texas Intermediate crude oil contract dropped 1.7% to $100.74 per barrel, and the global benchmark North Sea Brent fell 2.3% to $103.26 per barrel.

Dow JonesNasdaq CompositeS&P 500