Wall Street operates with a majority of losses due to the rise in rates and the fall in oil

The S&P 500 falls 0.4%, after its worst month of the year. The index Dow Jones loses 0.4%, while the Nasdaq index rose 0.3%. The falls in values oil and gas tankers weigh down the market after the crude oil prices gave up some of their strong gains since the summer. Most stocks fall with them, but Apple and Other big tech stocks help limit market losses.

The growing acceptance by Wall Street that the interest rates High inflation will remain high for some time as the Federal Reserve attempts to reduce high inflation. This, in turn, has driven Treasury yields to their highest levels in more than a decademaking investors less willing to pay high prices for stocks and other investments.

As reported Ambitthe 10-year Treasury bond yield rises again today, up to 4.65% from 4.58% on Fridayand is near its highest level since 2007. High yields affect stocks in several ways. Sending more investors to bonds that pay much more than in the pastwhich draws dollars away from stocks and reduces their prices. They also make loans more expensive for companies and their customers, which can put pressure on their profits.

Wall Street: hit by different factors

He dollar value US also rises against other currencies after the Federal Reserve says it will likely cut interest rates less than expected in 2024. It has already placed its main interest rate at the highest level since 2001.

Strong dollar gives American tourists a boosts that spend money abroad, but it hurts American companies that sell their products abroad. And for the large companies in the S&P 500 index, That means a big chunk of your income.

The US economy is generally resilient, defying predictions that it would have already fallen into recession.. A strong labor market and U.S. household spending have helped keep the economy afloat.despite much higher mortgage rates and other borrowing costs.

The manufacturing sector has been one of the hardest hit by rising rates, and reports today suggest it is continuing to contract, although perhaps not as much as expected.

According to a report from the Institute for Supply Management, the US manufacturing sector contracted in September for the eleventh consecutive month. More encouraging for Wall Street is that the report also indicates that prices are declining in September. This could mean less pressure on inflation, which has been hit lately by rapidly rising oil prices.

Wall Street and oil prices

Crude oil prices are down today, but remain much higher so far this year. A barrel of US crude oil falls 1.6%, to $89.37, although it has risen considerably from $70 in the summer. Brent crude oil, the international standard, fell 0.4% to $91.87. This contributes to ExxonMobil fell 2% and Chevron 1.6%.