CNBC Daily Open: High interest rate worries pressure stocks

Mixed markets, rising yields
U.S. markets were mixed connected Monday. The Nasdaq Composite roseate portion the S&P 500 and the Dow Jones Industrial Average fell, with the second snapping its three-day winning streak. The 10-year Treasury yield jumped astir 12 ground points. Asia-Pacific markets fell connected Tuesday. Australia's S&P/ASX 200 mislaid 1.66% to interaction its lowest closing level successful astir 2 weeks.

Shares of Hyundai Motor India fall
Hyundai Motor India shares retreated much than 5% connected Tuesday – their trading debut –  according to BSE data. Hyundai Motor India is simply a wholly owned Indian subsidiary of South Korean automaker Hyundai. Its archetypal nationalist offering attracted 278.56 cardinal rupees ($3.3 billion) and was oversubscribed by much than 2 times, according to Reuters.

New bullish signifier for gold
Gold prices deed a grounds precocious of $2,700 per ounce connected Monday, and are continuing their ascent Tuesday. The precious metallic is successful a "new bullish phase," Paul Wong, marketplace strategist astatine Sprott Asset Management, wrote successful a note. Citi analysts deliberation the terms of golden volition climb to $3,000 per ounce wrong the adjacent six to 9 months.

Restrictions connected investments into China
The U.S. is successful the last signifier of reviewing measures that volition curb investments into cardinal technologies successful China, according to an update by the U.S. government. The rules volition screen delicate technologies similar artificial intelligence, semiconductors and quantum computing. The last rules volition apt beryllium released wrong the "next week oregon so," according to Reuters.

[PRO] Top biotechnology stocks
Thanks to looser monetary argumentation crossed the world, concern successful the biotechnology assemblage volition ramp up, speeding up merchandise development, said an equity expert astatine Scotiabank. Three biotechnology firms are Scotiabank's "top picks," said the third-largest Canadian bank, with 1 having a imaginable upside of 100%.

High involvement rates were expected to enactment a lid connected a blistery U.S. economy, thereby cooling ostentation arsenic well. It's worked truthful far: Inflation has fallen from a highest of 9.1% successful June 2022 to  2.4% successful September 2024, going by the yearly complaint of the user terms index.

But "putting a lid" connected something, successful culinary terms, besides helps to support the vigor circulating wrong a space. That's what the U.S. economy, similar a stew perpetually simmering, seems to beryllium doing.

Despite the Conference Board's Leading Economic Index falling more than expected successful September, experts and markets deliberation some the system and involvement rates volition stay lukewarm — if not blistery — to the touch.

"We've raised rates a lot, and the US system has fundamentally absorbed them and inactive continues to execute rather well," Minneapolis Federal Reserve President Neel Kashkari said connected Monday. That indicates "the neutral complaint seems to beryllium higher" astatine this constituent of time, Kashkari added.

The neutral complaint is the constituent astatine which involvement rates neither stimulate nor clasp backmost the economy. In different words, the semipermanent involvement complaint mightiness extremity up higher than its humanities average.

The 10-year Treasury yield reflected that concern. After climbing astir 12 ground points, it's present astir 4.19%.

"Bond yields proceed to backmost up, which implies to maine that investors are present reasoning that the Fed volition beryllium slower to little involvement rates," said CFRA Chief Investment Strategist Sam Stovall.

Rising yields enactment unit connected stocks. The S&P 500 fell 0.18% and the Dow Jones Industrial Average mislaid 0.8% to interruption its three-day winning streak. The Nasdaq Composite, however, managed to summation 0.27%.

Hot stew is delicious. But, arsenic Goldilocks has taught us, excessively blistery and it'll pain our tongue. Too acold and it's unpalatable. It has to beryllium conscionable right.

— CNBC's Jeff Cox, Samantha Subin, Pia Singh and Sarah Min contributed to this report.