Southern Double Leveraged Nasdaq ETF (07266) dropped more than 3%, trading down 3.14% at HKD 42.02 with turnover of HKD 3.27 million as of press time.

On September 23, U.S. PMI data showed the services index jumping to 58.7 and manufacturing also strengthening, signaling economic expansion far exceeding expectations. However, a sharp selloff in U.S. Treasuries drove the 10-year yield to an intraday peak of 5.135%, the highest level since July 2007 and the biggest single-day gain since April 2025; the policy-sensitive 2-year yield also climbed to 4.947%, hitting a high not seen since May 2024.

As a result, the Nasdaq led declines among the three major U.S. indices, with high-valuation growth assets such as tech stocks under pressure. The surge in Treasury yields was further amplified by comments from Federal Reserve Governor Michael Barr, who stated that the U.S. economy remains strong and the labor market solid, but inflation is still above the 2% target and not cooling fast enough, suggesting further policy adjustments may be needed in the baseline scenario.

According to CME FedWatch data, market bets on a Fed rate hike in October jumped from around 55% before his remarks to over 66%.