U.S. stocks traded lower on Sept. 29 as rising Treasury yields outweighed optimism over a potential $2 trillion valuation for Anthropic. The S&P 500, Nasdaq Composite, and Dow Jones all slipped, gold gained, and the Shiller CAPE ratio touched its highest level since 1999.
The S&P 500 fell 0.25% to 7,665 as of 11:42 a.m. ET. The Nasdaq Composite slipped 0.10% to 26,793, and the Dow Jones Industrial Average traded 0.54% lower to 51,205. Persistent yield pressure offset optimism surrounding new artificial intelligence dealmaking.
Yields climb as gold gains
Gold rose 1.00% to $4,156.56. The 10-year Treasury yield climbed 4 basis points to 5.28%, and 30-year Treasury yields reached their highest level since 2002, stoking concerns about inflation and borrowing costs. Utilities led the session as the top-gaining sector, while financial services and healthcare declined.
AI dealmaking cushions the blow
However, reports of a potential $2 trillion valuation for Anthropic went some way to offset yield jitters and gave tech stocks a boost. Cboe Global Markets surged as trading volumes stayed elevated on news that it extended its exclusive licensing agreement with S&P Dow Jones. Advanced Micro Devices extended its prior-day gains after it announced an $8.2 billion acquisition of AI start-up World Labs. Boeing shares began to bounce back following the prior day's software glitch news.
A valuation warning sign
Yet it isn't only macroeconomic factors worrying investors. The Shiller CAPE ratio hasn't been this high since 1999, adding to fears about high valuations and a potential bear market. Still, caution does not have to mean panic — it is about understanding exposure to risk and managing it.
Source: The Motley Fool
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