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US Equity Markets Mixed After Government Bond Yields Rise, Crude Oil Prices Fall

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US equity indexes were mixed Friday as government bond yields rebounded, with the 10-year hovering near its highest level in almost two decades, while crude oil prices fell.

* US equity funds recorded outflows for a fourth consecutive week as rising crude oil prices heightened inflation concerns and expectations of a Fed rate increase added to investor caution ahead of its policy decision, Reuters reported.

* "We now expect two more hikes from the [Federal Reserve in the next 12 months], and our commodity analysts see energy markets facing a convergence of supply chain disruptions," Morgan Stanley said in a note.

* October West Texas Intermediate crude oil fell $2.26 to settle at $99.65 per barrel, while November Brent crude, the global benchmark, was last seen down $1.64 at $103.18.

* Nucor (NUE) shares were down 6.3%, the worst performer on the S&P 500, after the company said late Thursday it expects Q3 earnings of $5.55 to $5.65 per diluted share, below analysts' estimates.

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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