US stocks ended Wednesday mixed in a whiplashed trading session as investors digested new highs in interest rates, oil prices, and the US dollar.
Those three macro forces have been driving stock prices in recent weeks, helping drive a sizable September sell-off in the S&P 500 and Nasdaq 100, as investors grow concerned about the negative impact oil prices have on consumer sentiment, a higher dollar has on corporate profits, and higher interest rates have on equity valuations.
The 10-year US Treasury yield hit a cycle high of 4.64%, representing its highest level since August 2007. That makes stocks less attractive as investors now have a true alternative in the form of lower risk fixed income, according to Bank of America.
Meanwhile, US crude oil prices surged about 4% to $94 a barrel, representing its highest level since August 2022, and the US dollar index rose 0.40% to $106.34, representing its highest level since November 2022.
Here’s where US indexes stood shortly at the 4:00 p.m. closing bell on Wednesday:
Here’s what else happened today:
In commodities, bonds, and crypto: