[New York Stock Exchange] All Major Indices Open Lower as Oil Prices and U.S. Treasury Yields Rise

Dow Rebounds... Volatility Around the 50,000 Mark

As international oil prices and U.S. Treasury yields rose, all three major U.S. stock indices opened lower on May 21 (local time). Although the Dow Jones Index rebounded, it is barely holding above the 50,000 mark amid ongoing volatility.

According to the Home Trading System (HTS), as of 10:03 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was at 50,026.54, up 17.19 points (0.03%) from the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, was down 10.28 points (0.13%) at 7,422.69, while the Nasdaq Index, which is centered on technology stocks, was down 59.50 points (0.22%) at 26,210.86.

The market on this day reacted to international oil prices and U.S. Treasury yields. According to CNBC, crude oil prices surged after Reuters reported, citing sources, that Iran's new leader Mojtaba Khamenei had instructed enriched uranium to be stored domestically.

At this time, July delivery West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange was trading at $102.28 per barrel, up 4.00% from the previous session. July delivery Brent crude oil on the ICE Futures Exchange was up 3.60% at $108.77 per barrel.

Following the sharp rise in oil prices, growing concerns about rising inflation led to higher expectations that the Federal Reserve would raise its benchmark interest rate, which in turn pushed up Treasury yields, according to Bloomberg. The yield on the 10-year U.S. Treasury note rose by 4 basis points to 4.615%. The yield on the 30-year U.S. Treasury increased by 2 basis points to 5.14%.

Brett Kenwell of eToro said, "Geopolitical risks may still escalate, but the more pressing issues appear to be related to macroeconomic factors. High energy prices continue to amplify worries about long-term inflation. Even amid positive outlooks, the market has many factors to digest over the coming weeks and months."

ExxonMobil is up 0.51%, and Chevron is up 0.62%. Occidental Petroleum and APA are up 1.33% and 0.33%, respectively, while Diamondback Energy is down 0.06%.

Among large-cap stocks, performance is mixed. Nvidia, which set a new sales record the previous day, is down 0.93%. Microsoft is down 0.38%, Alphabet 1.05%, and Amazon 0.67%. On the other hand, Apple is up 0.10%, TSMC 0.96%, Broadcom 0.52%, and Tesla 0.12%.

Scott Helfstein, Head of Investment Strategy at Global X ETF, said, "The market has just finished a very strong earnings season, with positive upward revisions to earnings forecasts, but concerns about inflation and a decline in demand due to an economic slowdown still persist."

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