US PMI Hits 5-Year High, Pushing Bond Yields Past 5% and Dragging Dow Down 352 Points

Dow Jones··USIRTH·Read original
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Summary · why it matters

The preliminary September composite Purchasing Managers' Index for both manufacturing and services in the United States jumped to 58.4, the highest in more than five years, up from 56.0 in August, according to a survey by S&P Global. As a result, the yield on 10-year US Treasury bonds surged past 5%, reaching a 19-year high, adding weight to expectations that the Federal Reserve will raise interest rates again at its October meeting. The move pressured the Dow Jones Industrial Average to close at 51,511.59 points, down 352.10 points, or 0.68%. The S&P 500 closed at 7,706.03 points, down 58.61 points, or 0.75%, and the Nasdaq closed at 26,936.04 points, down 308.24 points, or 1.13%. The market was also pressured by Brent crude oil prices surging nearly 4% and concerns that the war between Iran and the United States could be prolonged, after Iranian President Masoud Pezeshkian declared at the United Nations General Assembly that Iran would not surrender to US pressure, just one day after President Donald Trump threatened that he could obliterate Iran. In European stock markets, the STOXX 600 closed at 639.92 points, down 2.86 points, or 0.44%, after oil prices rebounded past 100 dollars per barrel, with energy stocks rising 1.3%, while insurance stocks and construction and building materials stocks fell 1.7% and 1.3% respectively. As for the Thai stock market, the index is expected to move sideways, with GUNKUL among the stocks to watch after the Energy Regulatory Commission opened the way for the development of community solar projects with a capacity of 1,500 megawatts at a power purchase price of 2.1679 baht per unit. GUNKUL is ready to bid for several projects and take on EPC work fully, while its subsidiary TSE aims to add at least 100 megawatts of new power generation capacity through both community solar projects and direct power purchase agreements, or Direct PPAs, to serve electricity demand from the data center business.

Impact on assets 4

Energy Transition & Power Demand▲ · 2 stocks
Others▲ · 2 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Strong 58.4 PMI adds weight to expectations the Fed will raise rates again in October, pushing the effective fed funds rate higher.

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