[New York Stock Exchange] All Major Indices Close Lower as U.S. Treasury Yields Surge

30-Year U.S. Treasury Yield Hits 19-Year High

Inflation Concerns Intensify

Semiconductor Stocks Decline

On the 19th (local time), all three major U.S. stock indices closed lower. This is interpreted as investor sentiment weakening amid rising U.S. Treasury yields, which have heightened inflation concerns.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,363.88, down 322.24 points (0.65%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, ended at 7,353.61, down 49.44 points (0.67%), while the tech-heavy Nasdaq index dropped 220.024 points (0.84%) to close at 25,870.71.

View of the New York Stock Exchange. New York, USA - Photo by Yoonjoo Hwang

The stock market on this day was influenced by volatility in the bond market. The yield on the 30-year U.S. Treasury reached 5.198%, hitting its highest level in 19 years. According to CNBC, the yield on the 10-year U.S. Treasury, a key indicator for mortgage loans, auto loans, and credit card debt, also rose by 6 basis points (1bp=0.01 percentage points) to 4.687%, marking its highest since January 2025.

The surge in energy prices due to the aftermath of the Iran conflict has led to a spike in inflation indicators. In addition, concerns that the blockade of the Strait of Hormuz could be prolonged have further fueled inflation fears. These factors are seen as having triggered a simultaneous rise in global bond yields.

Will McGough, Chief Investment Officer at Prime Capital Financial, stated, "Risk aversion in the bond market is currently intensifying," adding, "Everyone expects energy prices to remain elevated, and inflation may run somewhat ahead of expectations, outpacing the Federal Reserve's response."

U.S. President Donald Trump announced the previous day that he would postpone an attack on Iran by one day at the request of leaders from major Middle Eastern countries. On this day, international oil prices ended lower.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for June delivery fell 0.82% from the previous session to $107.77 per barrel. On the ICE Futures Exchange, Brent crude for July delivery dropped 0.73% to $111.29 per barrel compared to the previous session.

U.S. Vice President J.D. Vance told reporters in the afternoon regarding negotiations with Iran, "I believe there has been considerable progress," adding, "I think the Iranian side also wants an agreement."

The Philadelphia Semiconductor Index fell more than 1% early in the session as investors took profits amid concerns over valuations and the sustainability of data center investments, but later recovered its losses and traded flat. In the over-the-counter market, Qualcomm declined by 3.92%, while Broadcom fell by 2.44%.

Jed Ellerbroek, portfolio manager at Argent Capital Management, said in an interview with CNBC, "It's a natural pause after a prolonged rally," and added, "It's interesting that such a reversal occurred just days before the world's largest semiconductor companies are set to report stellar results and outlook."

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