NY Stock Market Mixed Amid Renewed Concerns Over Evergrande... Sharp Rise in Treasury Yields

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The New York stock market closed mixed, reflecting concerns over China Hengda's suspension of interest payments on dollar debt and the US debt ceiling increase negotiations. Cryptocurrencies fell sharply due to the Chinese authorities' ban.

On the 24th (local time), the Dow Jones Industrial Average rose 33.18 points (0.07%) to 34,798.00, the S&P 500 index increased 6.50 points (0.15%) to 4,455.48, and the Nasdaq index fell 4.54 points (0.03%) to 15,047.70.

The Dow and S&P 500 indices rose for the third consecutive trading day, but the Nasdaq index remained slightly down, reflecting the rise in Treasury yields.

The 10-year Treasury yield rose intraday to 1.46%, the highest since early July.

The news that Hengda failed to pay the dollar bond interest due on the 23rd weighed on investor sentiment. Hengda is expected to be treated as in default after a 30-day grace period due to nonpayment of dollar interest.

The possibility of a US federal government shutdown is also tightening investor sentiment. The Biden administration has ordered agencies to prepare for a possible federal government shutdown next week.

Following the news that Chinese authorities have classified all types of cryptocurrencies as illegal financial activities, prices of cryptocurrencies such as Bitcoin and Ethereum plunged simultaneously.

The People's Bank of China has banned all circulation, use, exchange, and related services of cryptocurrencies. Violations may result in criminal penalties.

Bitcoin is trading at $42,900, down 4%. Ethereum is down 5.8% at $2,960, and Dogecoin has fallen 5.9% to 21 cents.