US stocks fall as 10-year Treasury yield hits highest since 2007
On Wednesday, U.S. shares experienced a decline while the benchmark 10-year Treasury yields surged to their highest level since 2007. This occurred after data revealed that U.S. business activity reached a five-year high in September, driven by a surge in new orders. The S&P Global flash US Composite PMI Output Index rose to 58.4 in September, marking the highest level since July 2021.
Manufacturing output increased, with factory hiring rising at the fastest pace since February 2021. Adam Button, chief currency analyst at investingLive, noted that this surge in output underscores the Federal Reserve's rate hike and hawkish stance. Consequently, yields have climbed to multi-year highs as traders price in the likelihood of further interest rate hikes by the Federal Reserve, with inflation remaining above the US central bank's 2% annual target.
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