NewzNEW YORK (AP) — Pressure continues to bear down on Wall Street from the bond market, keeping U.S. stocks in check on Thursday following what had been a strong rally.The S&P 500 slipped 0.2% and is on track for a third straight decline after climbing to the brink of its all-time high, which was set last month. The Dow Jones Industrial Average was down 182 points, or 0.4%, as of 10:30 a.m.
Eastern time, and the Nasdaq composite was 0.5% lower.Stocks have slowed under the weight of higher yields in the bond market, which make borrowing money more expensive for everyone. That includes discouraged people hoping to keep up with high inflation, businesses wanting to build data centers for artificial-intelligence technology and the U.S. government trying to cover the massive gap between its spending and revenue.Yields at their highest levels in years are slowing the overall economy while also undercutting prices for stocks and other investments.
The yield on the 10-year Treasury briefly neared 5.15% Thursday morning before pulling back to 5.11%, where it was late Wednesday.It’s roughly back to where it was in 2007 and up sharply from its 3.97% level before the war with Iran sent oil prices much higher. The price for a barrel of Brent crude in the most actively traded part of the market rose another 2.2% Thursday to $100.29.That’s helped push up the average price for a gallon of regular gasoline to $4.48 from less than $4.10 a month ago and from $3.16 a year earlier, according to AAA.It’s not just worries about inflation that’s sent Treasury yields higher. economy continues to grow, which also supports yields.
The bond market got a major jolt Wednesday after a preliminary report suggested U.S. business activity is growing at its fastest pace in years, while costs for corporate America are also rising quickly.On Thursday, a report showed fewer U.S workers applied for unemployment benefits last week and further strengthened expectations for the economy.Such numbers could convince the Federal Reserve that the economy can withstand more hikes to short-term interest rates. The Fed last week raised its main interest rate for the first time in three years in hopes of slowing the economy and removing some of the fuel for inflation.Traders now see close to a coin flip’s chance that the Fed could raise rates twice more by the end of the year, according to data from t…
stocks are falling again on Thursday.The S&P 500 slipped 0.4% and is on track for a third straight drop after rallying to the brink of its all-time high, which was set last month. The Dow Jones Industrial Average was down 124 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.Stocks have slowed under the weight of higher yields in the bond market, which make borrowing money more expensive for everyone.
The price for a barrel of Brent crude rose another 1.8% Thursday to $99.88.That’s pushed up the average price for a gallon of regular gasoline to $4.48 from less than $4.10 a month ago and from $3.16 a year earlier, according to AAA.It’s not just worries about inflation that’s sent Treasury yields higher. stocks are heading toward another loss. The S&P 500 fell 0.5% early Thursday and is on track for a third straight drop after rallying to the brink of its all-time high.
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