New York stock market plunges for three consecutive days... all three major indices fall

[Financial News] The three major New York stock indices fell for the third consecutive day on the 9th (local time). This was due to the impact of expanding geopolitical instability, such as international oil prices surpassing $100, a surge in U.S. Treasury yields, and concerns over a Federal Reserve interest rate hike.
On this day, the Dow Jones 30 Industrial Average closed at 52,380.66, down 405.41 points (0.77%) from the previous day.
The Standard & Poor's (S&P) 500 index closed down 37.16 points (0.48%) at 7,636.36, and the technology-heavy Nasdaq Composite index closed down 168.07 points (0.64%) at 26,253.34.
Brent crude surpassing $100 pressured investor sentiment as the likelihood of prolonged oil supply disruptions grew due to escalating tensions between the U.S. and Iran.
On this day, November delivery Brent crude futures on the London ICE Futures Exchange closed at $101.21 per barrel, up $3.29 (3.36%) from the previous session. This is the highest closing price since May 22. It is also the first time the closing price has exceeded $100 since July 23.
West Texas Intermediate (WTI) crude for October delivery also closed at $96.05 per barrel, up $3.02 (3.25%) from the previous session.
U.S. President Donald Trump suggested that oil prices could remain high at least until the upcoming U.S. midterm elections in November due to a war with Iran.
For this reason, there is significant caution regarding U.S. inflation indicators, such as the Producer Price Index (PPI) and Consumer Price Index (CPI), which are set to be released later this week. If inflationary pressures prove strong, the likelihood of the Fed raising rates in September increases; conversely, if inflation slows, the outlook for a rate freeze could gain traction.
The rising trend in U.S. Treasury yields also acted as a downward factor for the stock market.
The U.S. Treasury Department announced on this day that it would conduct an early buyback of long-term Treasury bonds worth up to $6 billion on the coming 10th. However, as this fell short of the $8 billion to $10 billion expected by some in the market, Treasury yields actually rose.
The U.S. 10-year Treasury yield surpassed 4.85% during trading, reaching its highest level since November 2023.
International gold prices rose. On the New York Mercantile Exchange, December delivery gold futures closed at $4,458.80 per ounce, up 0.5% from the previous session.


[email protected] Lee Seok-woo, International Specialist Reporter