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Stocks fall to 2-week lows as bond yields rise on inflation fears
The 10-year Treasury yield rose 4 basis points to 4.69%, while oil pushed toward a one-month high amid tensions tied to the Strait of Hormuz.
US stocks slid on Thursday, with the S&P 500 down 0.29%, the Dow Jones Industrial Average down 0.64%, and the Nasdaq 100 down 0.51%, as each major index fell to two week or more recent lows. E-mini S&P futures and September E-mini Nasdaq futures were also lower, extending the pressure into index futures.
Rising oil prices were a key driver of inflation risk and higher bond yields, according to Yahoo Finance. WTI crude climbed to a one-month high after President Trump threatened Iran with economic isolation, which dimmed prospects for a near term war breakthrough and reduced expectations for normalization of crude flows through the Strait of Hormuz.
The move in rates was reflected in US Treasury markets, where the 10 year T-note yield rose 4 basis points to 4.69%. At the same time, Walmart shares fell more than 9% after the retailer reported weaker than expected Q2 comparable same-store sales and forecast full year adjusted EPS below consensus.
On the macro side, Yahoo Finance pointed to mixed economic signals: weekly initial unemployment claims fell by 6,000 to 206,000, and the August Philadelphia Fed business outlook survey rose by 6.0 points to a 5.25 year high of 47.4. Leading indicators also increased 0.2% month over month, while San Francisco Fed President Mary Daly said she was not seeing evidence that the Fed needs preemptive rate hikes.
Latest closeWTI crude $82.40 ▲1.4%|S&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%