NewzNEW YORK (AP) — More swings in the bond market are rattling stock markets around the world on Thursday and offsetting optimism that the artificial-intelligence industry can keep climbing.The S&P 500 slipped 0.1% after swinging between earlier gains and losses and may be heading toward its seventh drop in the last eight days. The Dow Jones Industrial Average was down 188 points, or 0.4% as of 10:45 a.m. Eastern time, and the Nasdaq composite was virtually unchanged.The losses were sharper in Europe, where bond yields saw a significant jump overnight.
Stock indexes tumbled 1.7% in London and 1.6% in Paris after the yield on the 10-year U.K. government bond swung as high as 5.53% before falling to 5.37% and then charging upward again.High yields slow the overall economy by making it more expensive for everyone to borrow money, while undercutting prices for stocks and other investments.Yields are on the rise for a range of reasons, including worries about high inflation and oil prices, signals that the U.S. economy remains solid and governments' insistence to continue to spend much more money than they bring in.Those worries don’t look to be going away anytime soon, and oil prices climbed again Thursday to keep the pressure up on inflation.
The price for a barrel of Brent crude climbed 2.8% to $100.76, continuing its yo-yoing on uncertainty about when the war with Iran will allow the global oil industry to return to normal.Further reports also signaled the U.S. economy is powering through its many challenges. workers applied for unemployment benefits last week, which could mean fewer layoffs.
That followed a report on Wednesday that said the U.S. economy’s overall growth was even stronger in the spring than earlier thought.A separate report on Thursday said growth for U.S. manufacturing also continued in September.
Potentially more concerning in that report from the Institute for Supply Management was that increases in prices accelerated, which could mean further pressure inflation.The yield on the 10-year Treasury briefly neared 5.34% following the manufacturing report, before pulling back to 5.29%, where it was late Wednesday. It's near its highest level since 2002, and it's up from less than 5% just last week and from less than 4% before the war with Iran began.High yields can hurt real-estate owners in particular. NEW YORK (AP) — Another crank higher in bond yields is rattling stock markets around the world on Thursday and helping to overshadow optimism that the artificial-intelligence industry can keep climbing.The S&P 500 fell 0.2% after giving up an early gain and is heading toward its seventh loss in the last eight days.
The Dow Jones Industrial Average was down 191 points, or 0.4% as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.1% lower.The losses were even sharper in Europe, where bond yields saw a significant jump overnight. Stock indexes tumbled 1.6% in London and 1.3% in Paris after the yield on the 10-year U.K.
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