U.S. Stocks, Crude Oil, and Gold Decline Amid Rising Treasury Yields and USD

U.S. Stock Market on October 23: By the close of trading on October 23, the S&P 500 index fell 0.92% to 5,797.42 points. The Dow Jones Industrial Average dropped 0.96%, or nearly 410 points, to 42,514.95 points, marking its worst session since early September 2024. The Nasdaq Composite also slid 1.6% to 18,276.65 points.

U.S. Treasury Bonds on October 23: The yield on 10-year U.S. Treasury bonds reached its highest level since July 26, surpassing 4.25%. Despite the Federal Reserve's larger-than-expected interest rate cut last month, bond yields have surged. Recent economic data are seen as driving the increase in yields.

Dollar Index (DXY): The DXY index at one point surged to its highest level since late July, reaching 104.57. Recent comments from Federal Reserve officials indicated that the central bank would adopt a gradual approach to cutting interest rates.

Gold Market: Gold prices were under pressure from profit-taking after reaching record highs. At the close of trading on October 23, spot gold fell 1% to $2,721.12 per ounce, while gold futures dropped 0.9% to $2,734.60 per ounce.

Commodity Trading Market: Crude oil prices fell sharply after U.S. inventory data showed a significant increase of 5.5 million barrels, bringing total stocks to 426 million barrels for the week ending October 18. However, investor concerns about ongoing conflict in the Middle East remain.

By the close of trading on October 23, Brent crude dropped 1.42% to $74.96 per barrel, and WTI crude fell 1.35% to $70.77 per barrel.

Metals Market: Pressured by the strength of the U.S. dollar and rising Treasury yields, metal prices fell across the board, with silver drawing significant attention. Specifically, December silver prices dropped 3% to $33.839 per troy ounce, January 2024 platinum prices fell 1% to $1,029.7 per troy ounce, and December copper futures also decreased 1% to $4.3365 per pound.

Source: Compilation