New York Stock Market Mixed on 'Bond Yields and China Concerns'... Nasdaq Closes Down 0.2%

The New York stock market showed mixed trends amid rising Treasury yields and concerns over China's economic slowdown. On the 18th (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,500.66, up 25.83 points (0.07%) from the previous session.

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The Standard & Poor's (S&P) 500 index fell 0.65 points (0.01%) to 4,369.71, and the Nasdaq index dropped 26.16 points (0.20%) to 13,290.78.

The S&P 500 and Nasdaq indices declined for the fourth consecutive trading day. Although the Dow rebounded after four days, all three major indices showed a weak tone over the week.

The S&P 500 and Nasdaq indices fell for three consecutive weeks, marking their longest decline since February and December of last year, respectively. The sharp rise in Treasury yields, driven by expectations that U.S. interest rates will remain higher for longer than anticipated, increased pressure on the stock market, especially on tech stocks.

Among the top market capitalization stocks, Apple, Microsoft, and Meta have all dropped more than 10% from their recent highs, entering a correction phase. Tesla has entered a bear market, falling more than 30% from its peak last month. The Nasdaq index is currently down about 8% from its July high.

Investors focused on movements in Treasury yields and China's economic trends. The 10-year Treasury yield has recently surged to its highest level since 2008. After surpassing 4.3% the previous day, the 10-year yield fell to 4.24% on this day. While Treasury prices rose due to risk aversion stemming from China, the market is closely watching the sharp rise in Treasury yields.

Following the recently released minutes of the Federal Reserve's Federal Open Market Committee (FOMC), concerns have grown that the Fed may raise rates further if inflation does not slow faster than expected. Oil prices have risen this month, increasing the possibility of inflation rebounding, and recent economic data have shown strength, raising hopes for a soft landing. Even if the Fed holds rates steady next month, some expect it to keep the door open for additional hikes through the end of the year rather than declaring the end of rate increases, maintaining a prolonged tightening stance. Fed Chair Jerome Powell is scheduled to deliver a speech on the "Economic Outlook" at Jackson Hole at 10:05 a.m. Eastern Time on the 25th.

Growing concerns about China are also increasing risk aversion. News emerged that Chinese real estate developer Evergrande filed for bankruptcy protection under Chapter 15 in a U.S. New York bankruptcy court the previous day. The Chinese yuan has sharply depreciated against the dollar, and authorities are intensifying market interventions to curb volatility.

Within the S&P 500, energy, utilities, consumer staples, and real estate stocks rose. Telecommunications, discretionary consumer goods, financials, and materials stocks declined.

Experts analyzed that concerns over China's economic slowdown and U.S. tightening both pressured the market, and the recent market sentiment shifted from hopes for a soft landing to concerns over rising Treasury yields. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.59 points (3.30%) to 17.30 from the previous session.