Australian shares are set to open lower. US shares closed lower as oil prices rose and the US 10-year note yield traded above 5 per cent for the first time since 2023.
S&P/ASX 200 futures were down 14 points or 0.2 per cent to 8734, reversing an earlier modest gain. In New York, the S&P 500 fell 0.6 per cent as losses accelerated into the close. Information technology paced eight of the 11 industry sectors lower.
The yield on the US 10-year was trading at 4.99 per cent at 4.59pm in New York. The probability that Federal Reserve policymakers will vote for a 25-basis-point rate rise this week rose to 92.4 per cent, from 59.4 per cent a week ago.
“September has often been the toughest month of the year for stock investors,” Wall Street strategist Ed Yardeni. “That could be the case this year too.”
Yardeni said he is still projecting the S&P 500 to reach 8400 by the end of the year. “That target might be hit with stronger forward earnings and a weaker forward P/E than we had expected. So we are raising our 2027 earnings estimate to $US425 per share from $US415 and lowering our forward P/E expectation to 19.7 from 20.2.”
Source: https://www.afr.com/markets/equity-markets/us-10-year-yield-briefly-tops-5pc-as-oil-spikes-higher-anew-20260915-p60xbp