Stocks Slide Amid Rising Yields and Oil Prices

U.S. stock markets experienced a downturn as the Dow Jones, S&P 500, and Nasdaq fell sharply. This decline was primarily influenced by a surge in 10-year Treasury yields, which exceeded 4%, and a spike in oil prices fueled by Hurricane Milton and Middle East tensions. Major technology stocks, including Amazon and Microsoft, were hit hardest, while Alphabet faced pressures due to regulatory orders concerning Google Play.

Market sentiment shifted as robust jobs data diminished expectations of significant Federal Reserve rate cuts, with projections now leaning towards a modest 0.25% increase. Investors are closely watching upcoming inflation reports and third-quarter earnings for further market direction.

Despite the broader market downturn, Nvidia stood out as a rare gainer among major tech firms, driven by positive commentary on its AI platform. Conversely, insurance stocks and other sectors sensitive to interest rates faced declines. As the market navigates these dynamics, attention remains fixed on economic indicators and geopolitical developments, with hopes for a stable economic 'soft landing' still in play.