The Dow Jones index fell more than 100 points, pressured by a surge in U.S. government bond yields.
As of 8:39 p.m. Thai time, the Dow Jones Industrial Average was at 33,309.95 points, down 123.40 points or 0.37%.
U.S. 10-year Treasury yields surged to a 16-year high today amid expectations that The Federal Reserve (Fed) will keep interest rates high for long periods of time to stem inflation.
The increase in the yield on the 10-year US government bond, which is the US government bond used as a reference in determining the price of debt instruments around the world. This includes US mortgage interest rates. It will cause consumers to have less money for spending. Meanwhile, the cost of paying off mortgage loans increases. And companies will face higher costs from debt repayment. causing these companies to reduce investment and reduce dividend payments to investors
Moreover, the market was also pressured by the strengthening of the dollar. This will affect the profits of listed companies with foreign income.
The Dollar Index measures the dollar’s movement against six major basket currencies. It hit its highest level in 10 months today. This is in line with the rise in US government bond yields.
The market will keep an eye on the non-agricultural employment numbers on Friday. While analysts predict that Employment figures increased by 163,000 jobs in September. from 187,000 positions in August. And it is expected that the unemployment rate will adjust to 3.7% from 3.8% in August.
2023-10-03 14:19:20
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