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US Equity Markets End Lower as 10-Year Yield Tops 5%, Oil Advances

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US equity indexes ended lower Monday after US 10-year Treasury yields topped 5% for the first time since 2023 and oil prices rose.

* Yemen's Houthis launched a large-scale ballistic missile and drone attack on Saudi Arabia's King Khalid Air Base in Khamis Mushait and claimed "direct hits," Al Jazeera reported.

* Ahead of the Federal Reserve's monetary policy meeting on Wednesday, the likelihood of an interest rate increase by 25 basis points rose to 92.3%, up from 33.1% a month earlier, according to the CME FedWatch tool.

* October West Texas Intermediate crude oil rose $1.77 to settle at $101.82 per barrel, while November Brent crude, the global benchmark, was last seen up $1.65 at $106.26.

* Corning (GLW) shares fell 14%, the steepest drop on the S&P 500, after the company unveiled plans late Friday for the sale of up to $2 billion of its common stock through an at-the-market equity program.

* CrowdStrike Holdings (CRWD) rose 14%, the biggest gain on the S&P, as escalating concerns about AI risks lifted cybersecurity sentiment.

What else is happening in Japan?

Japan

US Equity Markets End Higher Amid Broad-Based Rally as Crude Oil Prices Drop

US equity indexes ended higher Friday amid a broad-based rally led by communication services and technology after crude oil prices dropped.* The Bureau of Labor Statistics' consumer price index rose 0.4% month-on-month, the fastest pace since May and above July's 0.1% gain, matching the Bloomberg-polled consensus.* Core inflation, which excludes the more volatile food and energy components, jumped to a four-month high of 0.3%, exceeding market projections for an unchanged 0.2% growth.* The University of Michigan's preliminary consumer sentiment index fell to 47.8 in September from 51.7 in August, versus the 51.0 expected in a survey compiled by Bloomberg.* October West Texas Intermediate crude oil fell $1.92 to settle at $100.59 per barrel, while November Brent crude, the global benchmark, was last seen down $2.76 at $104.87.* Dell Technologies (DELL) is poised to benefit from a multi-year artificial intelligence infrastructure spending cycle, setting the stage for results to sustain above long-term targets, RBC Capital Markets said in a note. The personal computer manufacturer's shares were up roughly 12%, the second-best performer on the S&P 500.* Copart (CPRT) shares were down about 2.7%, among the worst performers on the S&P 500, after the company said late Thursday it will acquire ACV Auctions (ACVA) for $10.50 per share in cash, valuing the latter at about $1.9 billion.

Dow JonesNasdaq CompositeS&P 500$ACVA$CPRT$DELL
Japan

Update: Communication Services, Technology Lift US Equity Indexes After August Inflation Print Triggers Rally in Shorter-Maturity Treasury Yields

(Updates with index/price moves, macroeconomic data, comments and geopolitical news from the first paragraph.)US equity indexes rose amid a broad-based rally led by communication services and technology, after August's consumer price inflation data sparked a rise in short-term government bond yields and crude oil slumped.The Nasdaq Composite jumped 1.2% to 26,391.5, the S&P 500 climbed 1.1% to 7,671.1, and the Dow Jones Industrial Average advanced 1.1% to 52,642.2 ahead of Friday's close. All sectors rose, with industrials among the top gainers.The consumer price index rose 0.4% month on month, the fastest pace since May and above July's 0.1% gain, the Bureau of Labor Statistics data showed Friday. The move matched the Bloomberg-polled consensus. Core inflation, which excludes the more volatile food and energy components, jumped to a four-month high of 0.3%, exceeding market projections for an unchanged 0.2% growth. On an annual basis, headline inflation held steady at 3.4%, as expected. The annual core measure eased to 2.4% from 2.5%, also in line with projections.Another iteration of inflation, the supercore - defined as core services excluding housing - jumped 0.5% in August, marking the largest monthly gain in four months, according to a Stifel note. Over the past 12 months, the supercore increased 3.0%, accelerating from the 2.8% gain in July and marking the fastest pace since June, per the note.Last month, Fed Chair Kevin Warsh reiterated the Fed's commitment to eventually reinstating price stability, a welcome sentiment but a reality already five years in the making, leaving market participants still skeptical of not only the potential for a rate increase next week, but a follow-through with additional hikes into year-end, the Stifel note said. "There is no doubt the Fed should raise rates, but the question remains: Will they?"Most US Treasury yields rose in the final leg of trading, with outsized gains concentrated in shorter maturity securities. The two-year shot up 9.4 basis points to 4.64%, the highest since mid-2024. The 10-year yield climbed 3.1 basis points to 4.98%, the strongest level since October 2023.A six-member bloc of Gulf states is weighing a meeting with Iranian officials next week to discuss the future of the Strait of Hormuz, people familiar with the matter told Bloomberg, in what would be the first gathering with the Islamic Republic since war erupted more than six months ago. Oman is aiming to get foreign ministers from the Gulf Cooperation Council and Iran together on Monday in Salalah, a southern Omani city, people familiar with the matter told the news agency.The front-month US West Texas Intermediate crude oil contract slumped 2.3% to $100.16 per barrel, and global benchmark North Sea Brent dropped 2.9% to $104.52 per barrel.

Dow JonesNasdaq CompositeS&P 500$DELL
Japan

Update: Communication Services, Technology Push US Equity Indexes Higher in Midday Trading

(Updates with index/price moves, macroeconomic data and geopolitical news from the first paragraph.)US equity indexes rose amid a broad-based rally led by communication services and technology, after August's consumer price inflation data sparked a rise in short-term government bond yields and crude oil slumped.The Nasdaq Composite jumped 1.2% to 26,399.2, the S&P 500 climbed 1.1% to 7,673.3, and the Dow Jones Industrial Average advanced 1.1% to 52,605.7 after midday Friday.The consumer price index rose 0.4% month on month, the fastest pace since May and above July's 0.1% gain, the Bureau of Labor Statistics data showed Friday. The move matched the Bloomberg-polled consensus. Core inflation, which excludes the more volatile food and energy components, jumped to a four-month high of 0.3%, exceeding market projections for an unchanged 0.2% growth.On an annual basis, headline inflation held steady at 3.4%, as expected. The annual core measure eased to 2.4% from 2.5%, also in line with projections.Most US Treasury yields rose in midday trading. The two-year jumped 6.3 basis points to 4.61%, the highest since mid-2024. The 10-year yield was steady at 4.94%, the strongest level since October 2023.The front-month US West Texas Intermediate crude oil contract slumped 3.2% to $99.18 per barrel, and global benchmark North Sea Brent dropped 3% to $104.40 per barrel.

Dow JonesNasdaq CompositeS&P 500