NewzNEW YORK (AP) — After whipping through a couple sudden reversals, stocks ended a shaky day of trading on Wall Street Thursday roughly where they began.The S&P 500 finished nearly flat and edged down by less than 0.1% following several turns between losses and gains. The Dow Jones Industrial Average dropped 161 points, or 0.3%, and the Nasdaq composite added less than 0.1%.Stocks have slowed their rally since the S&P 500 climbed to the brink of its all-time high earlier this week as pressure from the bond market has cranked higher.The yield on the 10-year Treasury jumped to 5.20% from 5.11% late Wednesday and is back to where it was in 2007. High yields slow the overall economy by making it more expensive to borrow money, while also undercutting prices for stocks and other investments.Yields climbed through the morning, which pushed stocks downward, until they took a sudden turn lower in the midday hours.
The 10-year yield dropped from nearly 5.17% to less than 5.13% in about 20 minutes before ultimately turning higher again.Yields once again were following the track of oil prices, which have been scattershot because of uncertainty about when the war with Iran will allow crude oil to flow freely again from the Middle East.The price for a barrel of Brent crude in the most actively traded part of the market went from $102 to roughly $99 in a matter of minutes midday Thursday. It later rose to settle at $100.22, up 2.1% from the prior day.It’s not just worries about expensive oil and inflation that have sent Treasury yields higher. economy continues to expand, which also supports yields.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 raised its main interest rate last week for the first time in three years in hopes of slowing the economy and removing some of the fuel for inflation.Traders now see better than a coin flip’s chance that the Fed could raise rates twice more by the end of the year, according to data from CME Group.So far, the solid overall economy has helped U.S. companies continue to deliver strong growth in profits. That in turn has helped their stock prices remain relatively strong despite worries about war, inflatio…
NEW YORK (AP) — After whipping through a couple reversals, stocks on a suddenly shaky Wall Street are roughly back to where they began Thursday.The S&P 500 was virtually unchanged in late trading following several turns between losses and gains. The Dow Jones Industrial Average was down 166 points, or 0.3%, with an hour remaining in trading, and the Nasdaq composite was basically flat.Stocks have slowed their rally since the S&P 500 climbed to the brink of its all-time high earlier this week as pressure from the bond market has cranked higher.The yield on the 10-year Treasury climbed to 5.16% from 5.11% late Wednesday and briefly got near 5.18% earlier in the day. It's back to where it was in 2007, and high yields slow the overall economy by making it more expensive to borrow money while also undercutting prices for stocks and other investments.Yields climbed through the morning, pushing stocks downward, until they took a sudden turn lower in the midday hours.
economy continues to expand, 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.
NEW YORK (AP) — Stocks swung on Wall Street Thursday amid pressure from the highest bond yields in almost two decades and another rise in crude oil prices.A morning dip for major indexes turned into an unsteady afternoon as oil prices jumped, eased and then regained ground. The bond market, meanwhile, continues applying pressure to stocks.The S&P 500 fell 0.1% in afternoon trading, after it had briefly regained ground from a morning decline. The index is headed for its third day of declines after climbing to the brink of its all-time high.
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