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Dow, S&P 500 slip as 10-year yield jumps above 5%
The 10-year Treasury yield pushed above 5% for the first time since 2007 as oil rose and investors weighed expectations for another possible Fed rate hike.
A sell-off in US stocks accelerated as Treasury yields surged, with the 10-year yield climbing above 5% to its highest level since 2007. Markets broadly moved lower, with the Dow Jones Industrial Average down 0.6% and the S&P 500 also down 0.6%, while the Nasdaq Composite fell 1% after posting back-to-back record highs earlier in the week, according to Yahoo Finance.
The jump in yields came alongside evidence that S&P's gauge of US business activity expanded faster than economists expected. The rise in rates also coincided with higher oil prices, with Brent crude futures around $98 per barrel and WTI crude futures near $92, as investors weighed uncertainty around US-Iran relations.
Diplomatic attention also remained centered on a US-Iran thaw narrative after President Trump said US and Iranian officials met for several hours at the UN on Tuesday. Yahoo Finance also noted that Trump is expected to greet Chinese President Xi Jinping at Joint Base Andrews, with leaders scheduled to discuss topics including trade, the war in Iran, rare earths, and artificial intelligence, all of which are likely to keep risk sentiment volatile for investors.
Latest closeWTI crude $91.79 ▼3.0%|Brent $97.67 ▼1.6%|S&P 500 7,706.03 ▼0.8%