"Market Disruption: High Interest Rates Spark Unprecedented Changes"

Major U.S. indexes experienced significant drops as the Dow Jones Industrial Average fell into negative territory for the year, while the 10-year Treasury yield reached a 16-year high of 4.8%. Asian markets followed suit, with Japan's Nikkei 225 and South Korea's Kospi both losing around 2%. In other news, job openings in the U.S. exceeded expectations in August, but hires and the number of quits remained relatively unchanged. Foreign investment in Japan's real estate market rose by 45% in the first half of 2023, driven by loose monetary policy and a weak yen. Additionally, House Speaker Kevin McCarthy was ousted in a no-confidence vote, and Citi suggests that investors looking to capitalize on India's economic growth should consider sectors beyond technology. The financial markets are experiencing a breakdown in the narrative of long-term low interest rates, leading to rising Treasury yields and expectations of more rate hikes, which caused stocks to plummet. Investors are concerned about further volatility and potential new market lows if rates continue to rise.