Wall St slips as higher Treasury yields weigh on sentiment

Stocks on Wall Street opened modestly lower on Friday, September 18, as higher Treasury yields and lower oil prices weighed on investor sentiment. Major US stock indexes showed little movement due to the absence of fresh catalysts. While Alphabet and Meta experienced slight gains, Nvidia and Microsoft saw minor declines. The recent Federal Reserve interest rate hike and Chair Kevin Warsh's comments on future borrowing costs have kept investors on edge.

Oil prices, which have eased inflation concerns, fell nearly 1% to $103.87, but elevated yields on US Treasuries have tempered enthusiasm for stocks. The 10-year Treasury yield rose 2.9 basis points to 4.976%. Investors are now assessing the impact of the Fed's recent moves and the potential consequences of a slowdown in AI development, as top industry executives have called for.

The upcoming meeting between US President Donald Trump and Chinese President Xi Jinping in Washington adds uncertainty to the outlook, particularly regarding AI supremacy. Earnings season remains a month away, and early commentary from top executives at conferences has given investors a preliminary view of corporate health, influencing market sentiment.

Despite strong S&P 500 earnings growth, some strategists warn of an 'earnings bubble.' The triple witching expiration of derivatives contracts tied to stocks and index options added to trading volume and potential volatility on Friday. In other news, Xenon Pharmaceuticals halted enrollment in tests for its experimental drug for major and bipolar depression due to side effects, while Berkshire Hathaway announced that Warren Buffett will step down as chairman.

Shares of ON Holding rose 6% after the company signed Kylian Mbappé for its soccer market expansion, while Nike experienced a decline of more than 1% following a previous partnership with Mbappé.