Stocks fell in New York as Treasury yields rose sharply ahead of the announcement of the results of the Federal Open Market Committee (FOMC) meeting of the Federal Reserve.
On the New York Stock Exchange (NYSE) on the 20th (local time), the Dow Jones Industrial Average closed at 37,06.23, down 313.45 points (1.01%) from the previous day.
The Standard & Poor’s (S&P) 500 index fell 43.96 points (1.13%) to 3855.93, and the Nasdaq index, which focuses on technology stocks, closed at 11,1425.05, down 109.97 points (0.95%) from the battlefield.
The rise in US Treasury yields ahead of the September FOMC rate decision to be announced on the 21st (local time) dragged the stock market down. The yield on the two-year US Treasury bond rose above 4% for the first time since October 2007. The 10-year government bond yield also rose to 3.6%, the highest since April 2011.
Markets expect the Fed to raise rates by 0.75 percentage points at the FOMC meeting. However, some argue that the possibility of a 1 percentage point increase should be left open.