Key Takeaways
- The US 10-year Treasury yield surged to 5.33%, its highest level in 24 years, triggering a sharp sell-off in global equity markets.
- South Korea’s Industry Ministry formally objected to a White House announcement claiming a $54 billion commitment to the Alaska LNG project, stating no final agreement has been reached.
- Amazon (AMZN) and Constellation Energy (CEG) signed a 20-year power deal to support a $3 billion expansion of the Calvert Cliffs nuclear plant in Maryland.
- Spanish manufacturing returned to growth in September with a PMI of 51.0, though rising energy costs and maritime shipping delays continue to pressure margins.
- UAE authorities launched a "terrorist activity" inquiry into a FlyDubai flight incident involving a cockpit altercation on a route to Tel Aviv.
Treasury Yields Hit Multi-Decade Highs
The US 10-year Treasury yield jumped to 5.33% on Thursday morning, marking the highest level since 2002. This spike has intensified pressure on global equities, with Germany's DAX falling 0.6% and Britain's FTSE 100 dropping over 1%. Investors are recalibrating expectations for long-term interest rates as persistent inflation and robust labor data suggest the Federal Reserve may maintain a restrictive stance longer than anticipated.
In Europe, sovereign debt markets are seeing similar volatility. The French 10-year yield hit a 24-year high of 4.86%, as markets express skepticism over the government's ability to manage its fiscal deficit. The spread between French and German borrowing costs has widened to its highest level since the 2012 sovereign debt crisis, reflecting growing concerns over regional stability.
Diplomatic Friction Over Alaska LNG Project
South Korea's Industry Minister Kim Jung-kwan lodged a protest against U.S. Commerce Secretary Howard Lutnick following a White House announcement regarding the Alaska LNG project. While the U.S. administration claimed South Korea had committed to a $54 billion investment, Seoul clarified that the project remains subject to "commercial viability" and legal reviews. The discrepancy highlights a rift between the two nations over the "strategic investment package" initially valued at $200 billion.
The South Korean government emphasized that while it agreed to begin a review of the pipeline, no specific numbers or project progress have been confirmed. This pushback comes as U.S. officials face pressure to finalize energy deals ahead of the upcoming midterm elections.
Corporate and Regional Developments
Amazon (AMZN) and Constellation Energy (CEG) have entered a massive 20-year agreement to add 190 megawatts of nuclear capacity at the Calvert Cliffs plant. The deal provides Constellation with the revenue certainty needed to relicense the facility through 2050 and supports Amazon’s massive energy requirements for its data center operations. Shares of Constellation Energy rose as much as 5% in extended trading following the news.
In the automotive sector, Tesla (TSLA) saw a 38.4% year-over-year increase in new car registrations in Sweden for September. This recovery follows a period of labor disputes and suggests resilient demand for the Model Y in the Nordic region. Meanwhile, Spain's Manufacturing PMI rose to 51.0, exceeding estimates of 50.2. While the sector is expanding for the first time in four months, manufacturers warned that input cost inflation is accelerating at its fastest pace since early 2026.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.