[New York Stock Exchange] U.S. Treasury Yields in Focus as Markets Open Mixed, Turn Lower

Semiconductor Stocks Slump

Major Market-Cap Stocks Also Weaken

On May 19 (local time), the three major U.S. stock indices started the day mixed but are now all pointing downward.

According to the home trading system (HTS), as of 10:05 a.m., the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) is trading at 49,449.84, down 236.28 points (0.48%) from the previous session. The S&P 500, which is weighted toward large-cap stocks, has fallen 41.98 points (0.57%) to 7,361.07, while the tech-heavy Nasdaq is down 214.76 points (0.82%) at 25,875.97.

New York Stock Exchange. New York (USA) - Special Correspondent Yoonju Hwang.

The bond market appears to be weighing on equities. The yield on the 30-year U.S. Treasury has surpassed 5.18%, marking its highest level in nearly 19 years. The rise in Treasury yields began last week following the release of inflation data. This is because inflation is seen to be accelerating again as oil prices have risen due to the war in Iran.

In particular, the increase in market interest rates is interpreted as reflecting the possibility that the Federal Reserve (Fed) could maintain its tightening stance for an extended period. As a result, CNBC reported that this has recently affected investor sentiment in some semiconductor stocks.

The Philadelphia Semiconductor Index has dropped 1.4%, falling more than 7% in just three days. Investors are taking profits due to concerns about the valuation of semiconductor companies and the sustainability of data center investments.

Jed Ellerbrock, portfolio manager at Argent Capital Management, said in an interview with CNBC, "It's a natural breather after a long upward trend," adding, "It's an interesting time for such a reversal to occur just days before the world's largest semiconductor companies announce outstanding earnings and forecasts."

He added, "Given positioning and how overheated things have become, it seems unlikely we'll see a sharp rebound like the one that occurred after the March lows."

Looking at the top market-cap stocks, Nvidia is down 0.99%, Amazon 1.95%, Alphabet 1.47%, Broadcom 2.58%, and Tesla 3.19%. On the other hand, Meta is up 0.07%, Apple 0.27%, and Microsoft 1.19%.

This content was produced with the assistance of AI translation services.