Stocks Close Lower, Bond Market Slide Deepens, More

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Why did stocks and bonds close lower as oil prices surged?

Leila Fadel 0:00

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Amy Morris 0:24

News when you want it with Bloomberg News Now, I'm Amy Morris. There's your closing bell for this Wednesday on Wall Street, where stocks joined bonds lower as a rally in oil prices stoked worries about inflation. The SP 500 lost 58 points, NASDAQ down 308 points, the Dow down 351 points. Treasury is set to purchase up to $6 billion of longer-dated government debt tomorrow, part of Treasury Secretary Scott Besson's program to stem the rise in borrowing costs. The Institute of International Finance criticized the plan. They warn it may provide temporary relief, but cannot be a very important thing to do. resolve the underlying problem of rising debt.

How are Treasury yields reacting to the latest Fed rate‑hike expectations?

Amy Morris 1:11

Checking those yields now, the two-year Treasury yield at 4.89%, the 10-year Treasury yield at 5.1 percent, the 30-year Treasury yield at 5.4 percent. The yield on five-year U.S. Treasuries rose above five percent for the first time in almost twenty years. Investors getting ready for more Fed rate hikes. Expectations for more hikes grew after the SP global September preliminary gauges of U.S. manufacturing and services activity topped median estimates.

Michael Barr 1:48

are likely to be needed. To ensure inflation comes down to target in a timely fashion.

Amy Morris 1:53

Bar described the economy as strong and the labor market as solid, but said inflation is not trending toward that two percent target fast enough.

Unknown 2:13

An unusually partisan fed. And uh it's a hard thing to do, but like you could start with uh Bar and J not resigning.

What did Treasury Secretary Scott Benson’s debt‑purchase plan aim to achieve?

Amy Morris 2:24

Hassett spoke at the Financial Markets Quality Conference in Washington DC. Turning now to Iran, Iran president Masood Pazeshkian says his country has no interest in developing atomic weapons but will not give up their right to develop nuclear technology for economic development. He addressed the UN General Assembly.

Unknown 2:44

We will not bow our head and give up the right that is inherently ours. We say it clearly. No nuclear weapons and no limitations to new peaceful nuclear technology.

Marco Rubio 3:17

But if they continue to insist on the desire for a nuclear weapon, their support for proxies in the region that de their support of terrorism, they're the world's leading sponsor of terrorism, then we're gonna have big problems with them.

Amy Morris 3:28

Rubio says President Trump for now is focused on imposing economic restrictions on Iran, but also has military options. Crude oil is higher, WTI crude oil topping $92 a barrel, Brent Crude topping $103 a barrel. The White House says it is not preparing a plan to ban exports of diesel to bring down energy prices.

How is Iran’s stance on nuclear technology affecting global diplomacy?

Amy Morris 3:49

Politico had reported the administration was mulling it over. The average cost of diesel Diesel now topping $6.50 per gallon. The newest proposal to help regulate the economic impact of artificial intelligence comes from Democratic Senator Mark Kelly of Arizona. The Make AI Work for Americans Act is designed to protect American workers and regulate the AI industry. It includes a digital ad tax and an AI usage tax to fund support for workers displaced by AI. Senator Kelly says now is the time to take action.

Unknown 4:21

You know, I think about this as like being in the space shuttle and the master alarm light is flashing in your face. It's time to act and come up with a plan. And there is the possibility we could have significant job loss. Hasn't come as fast as we thought.

What are the key provisions of Senator Mark Kelly’s ‘Make AI Work for Americans’ Act?

Unknown 4:38

However, the technology is moving along and becoming more capable than we anticipated.

Amy Morris 4:43

Arizona Senator Mark Kelly was on balance of power. The FBI is investigating an apparent breach of its jobs website, with a hacking group claiming to have accessed very sensitive data on nearly all agents and job applicants.

Amy Morris 5:08

Public service announcement. Disgraced movie producer Harvey Weinstein has been sentenced to 15 years in prison for sexually assaulting a woman in New York in 2006.