Major stock indexes on the New York market in the United States were weaker in early trading on the 15th local time. After the Standard & Poor's (S&P) 500 and the Nasdaq hit a record high the previous day, many investors appear to be taking profits.
The lack of clear agreements from the U.S.-China summit and the rise in U.S. Government Bonds yields amid inflation concerns are also cited as bearish factors.
At 10:15 a.m. on the day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average stood at 49,660.79. It fell 402.67 points (0.86%) from the previous day, slipping back below the 50,000 mark after just one day. The S&P 500 and the Nasdaq dropped 66.51 points (0.89%) and 315.18 points (1.18%), respectively, from the previous day.
The "big deal" the market had hoped for did not emerge from the U.S.-China summit. President Trump wrapped up a three-day state visit to China and set off for home that day. During the visit, President Trump met six times with Chinese President Xi Jinping, but there was no announcement of concrete agreements on core issues such as Taiwan and trade in semiconductors and rare earths.
International oil prices are also rising as talks between the United States and Iran remain deadlocked. That could increase inflationary pressure.
Front-month prices for U.S. West Texas Intermediate (WTI) and U.K. Brent crude are $104 and $108 per barrel, respectively, trading more than 2% higher than the previous day.
The U.S. Government Bonds 10-year yield has surpassed the 4.5% level, seen as a risk-off signal in global financial markets. The U.S. Government Bonds 30-year yield topped 5.1%, approaching the record high since 2023.
High interest rates weigh on growth stocks. Nvidia shares are down more than 3%. Stocks such as Amazon, Google, Broadcom and Tesla are also trading at lower prices than the previous day. Among top market-cap names, only some stocks, including Apple and Microsoft, posted gains.
The dollar index, which measures the value of the dollar against the currencies of six major countries, also rose and neared the 100 level. A stronger dollar can also stoke risk-asset aversion.