Key facts
- The S&P 500 fell to a two-week low on Thursday.
- US Treasury yields reached multi-decade highs.
- Manufacturing input prices jumped according to ISM data.
- Brent crude oil rose to $101.76 a barrel.
- Accenture shares surged 18% on strong revenue forecasts.
- The Cboe VIX index climbed to a two-week high of 17.07.
US stocks declined on Thursday, with the S&P 500 reaching a two-week low, as a global bond selloff intensified. Higher oil prices and concerns over inflation pushed US Treasury yields to multi-decade highs, overshadowing gains in software stocks. The benchmark 10-year Treasury note touched 5.3445%, its highest level since April 2002, following a significant quarterly advance. This surge in yields was partly attributed to a higher-than-expected 'prices paid' component in the latest ISM manufacturing data, which indicated inflationary pressures.
Oil prices also contributed to inflation worries, with Brent crude jumping to $101.76 a barrel. The market selloff followed a difficult September for equities, with the S&P 500 and Dow Jones Industrial Average posting declines of 0.17% and 0.30% respectively. Rate-sensitive sectors such as housing and banks experienced declines, as did real estate, utilities, and consumer staples indexes. The Cboe VIX index, a measure of market volatility, climbed to a two-week high of 17.07.
Technology stocks, however, showed resilience, particularly software shares, which rallied on positive results from Accenture. The IT consulting firm's shares surged 18% after it forecast full-year revenue growth above estimates, leading rival Cognizant to climb 6.4%. The S&P 500 software index advanced 0.8%. Micron Technology's better-than-expected revenue forecast also supported the AI trade.
Constellation Energy saw its shares rise 2% after securing a 20-year power purchase agreement with Amazon.com.